The Gold price has stopped its rise at $1,260 where we find the 4-hour cloud resistance. Price is moving lower along the lower cloud boundary. The Gold price has formed what seems to be a bullish flag and is now trying to break out above it.
Red lines - bull flag pattern
The Gold price has short-term support at $1,248 and resistance at $1,260. A break above $1,260 will push the price higher towards $1,274 which is the first target. The second target is at $1,290. Gold has broken out of the bearish channel and the chances of a big bounce here are high.
The material has been provided by InstaForex Company - www.instaforex.com