Gold price is challenging important resistance trend line and we should soon see either a breakout towards $1,300 and higher or a rejection and a move below $1,270 towards $1,250-60.
Blue line- major resistance trend line
Blue rectangle - short-term support
Gold price is challenging the downward sloping blue trend line resistance while trading inside the major confluence zone. Breaking above the red zone and the blue trend line will be a bullish sign. Gold will be expected to move at least towards $1,300 which is the next resistance. Support is at $1,276 shown by the blue rectangle. Failure to stay above it will open the way for a move towards $1,250-60.
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