Gold price spiked to new highs after the US elections results but the highs are not sustained as price is pulling back down. Yesterday prices reached as low as $1,270 and this is important support now.
Red line - support trend line
Gold price has support at $1,290 and at $1,280. A break below this area will push Gold price most probably towards lower lows below $1,240 towards $1,200-$1,170. If support holds, bulls will manage to push price towards the post election highs and if we make new highs, then the chances of reaching $1,370 will be increased.
It is important to see if price manages to close the week above the blue trend line resistance. Price has bounced off the 38% Fibonacci retracement. A break below $1,270 will imply that the upward move was part of the correction phase and that a new low to complete the correction will follow and push price towards the weekly cloud.
The material has been provided by InstaForex Company - www.instaforex.com