Gold price has made a new lower low just below $1,280 and I believe this could be the end of the downward correction. I expect Gold price to resume its uptrend. I remain longer-term bullish about Gold.
Gold price as expected has pulled back towards the Ichimoku cloud and is still holding above it, turning higher following the upward slope of the Kumo (cloud). Oscillators are turning upwards as well confirming the increased chances of a bigger upside reversal and the continuation of the uptrend that started from $1,240.
Gold price needs to break above the blue trend line resistance in order to increase chances of the bullish scenario that implies that $1,240 is a very important low and bottom of this trend. Gold price is expected to move towards $1,350 where the biggest test for bulls will be. A break above $1,350-60 will imply a strong uptrend in play towards $1,450. Short-term support remains at $1,280 and $1,270 next.
The material has been provided by InstaForex Company - www.instaforex.com