Ichimoku indicator analysis of gold for June 6, 2017

Gold price is reaching our targets we mentioned since early May. There are several indicators showing that this rally will be short-lived and bulls need to raise their stops and protect their positions. A pullback at least towards $1,250 is expected.

Gold price remains in a bullish trend as price continues to trade above both the tenkan- and kijun-sen indicators. Support is at $1,273. If broken the correction starts, next support will be at $1,260. Resistance is at $1,290-$1,300.

Black line - long-term trend line resistance

Blue line - long-term trend line support

Gold price is breaking out of the weekly Kumo and is testing the black trend line resistance. I do not expect Gold price to break now above the black trend line or at least make a real breakout. If it breaks out, I would not be buying on strength but wait for a pullback at least towards $1,250. I remain longer-term bullish on Gold.

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