Gold price has broken above the short-term resistance level of $1,288 and bulls should now expect at least a move towards the major resistance area of $1,294-$1,300. Breaking above this major resistance will have implications for the medium-term trend which remains bearish after topping back in February.
Blue rectangle -short-term target
Black line - major resistance trend line
Gold price has support at today's lows at $1,275. Short-term resistance and previous highs at $1,288 are broken and we now expect price to move higher towards the blue rectangle and the major downward sloping trend line resistance at $1,294-$1,300 area. Bears remain in control of the medium-term trend and as long as price is below $1,300 bulls need to be very cautious.
The material has been provided by InstaForex Company - www.instaforex.com