Gold price has reached our short-term bounce target of $1,300 as we expected for the last few sessions and explained in our past analysis. Gold could see another pull back towards $1,290 but the bounce could extend higher towards $1,310 over the coming days. A move below $1,290 will increase the chances of making a new lower low towards $1,270-60 area.
Gold price has stopped its rise at the 38% Fibonacci retracement. This is a short-term resistance. Breaking and holding above it will open the way for a move towards $1,310-12 and the 61.8% Fibonacci retracement. First we could see a pullback to $1,290-94 before moving higher. At current stage I'm neutral as we are near the short-term resistance and all scenarios are open. Support is at $1,290-87 and a break below it will open the way for new lows towards $1,270-60. This will be confirmed with a break below $1,280. On the other hand a higher low around $1,290, if price is supported, could lead to a new move higher towards our next Fibonacci target of 61.8%.
The material has been provided by InstaForex Company - www.instaforex.com