Ichimoku indicator analysis of gold for May 31, 2017

Gold price is trading between $1,270-60. Overall Gold bullish strength has weakened. Although we may see a new higher high towards $1,280-90, I do not believe Gold is ready to break above $1,300. I believe it is more probable to see a pullback towards $1,200-$1,230 first.

Blue lines - trading range

Gold price is holding above the Ichimoku cloud and the kijun-sen on the 4-hour chart. In cloud terms, we are still in a bullish trend. Short-term support is at $1,259. Resistance is at $1,265. Next resistance is at $1,270. Important support levels below $1,259 are at $1,247 and at $1,235.

Gold price continues to trade around the 61.8% Fibonacci retracement and back inside the daily Kumo. A break to new highs will open the way for a push towards $1,280-90. Daily support is at $1,244 if $1,259 is broken. My longer-term bullish view remains intact even if we make a deeper pullback towards $1,200.The material has been provided by InstaForex Company - www.instaforex.com