Gold price has so far pulled back $13 from its recent highs. Our target of $1,320 has been reached and as I noted in our last few posts, this is the time to take some profits or be neutral in Gold. The pull back has started.
Although medium-term trend remains bullish as long as price is above $1,270, the chances of a pull back were high over the last week and specially after our target of $1,320 has been met. Gold price is expected to pull back towards $1,300 now at least. Major support is found at $1,277-75 and if broken then the entire move up has ended. Bulls want to see Gold price respect and hold above $1,300 in order to make another wave higher towards our next target of $1,350. If $1,300 is lost then bulls need to hold above $1,275-77. Breaking below $1,300 will give bears some edge but in order to regain control of the trend, the support at $1,275-77 must fail to hold.
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