The Gold price made a deep pullback yesterday below $1,250 but managed to close above it. Gold price could be making an ABCD pattern with $1,272 as the first target and $1,290 as the second target. The Gold price has more upside potential than downside.
Black line - resistance
Blue lines - ABCD pattern
The Gold price has short-term resistance at $1,256 and next at $1,265. Breaking above these levels will confirm and strengthen the bullish scenario for a move at least towards $1,272. On the other hand, if prices break below $1,240 bulls will be in trouble as we should then expect the price to move towards $1,200.
The material has been provided by InstaForex Company - www.instaforex.com