Gold price got rejected at the $1,490 resistance area and remains inside the weekly bearish channel its been in since the summer top. Gold price bounced as expected by our analysis towards $1,480-90 area. Gold back tested the important resistance area of $1,490 which was previously an important break down area.
Gold price weekly candlestick is a bearish one as price pushed towards channel resistance and price turned around and ended the week near its week lows. Bulls need to recapture $1,490-$1,500 level in order to hope for new highs above $1,557. Major support is found at last week's low around $1,450. A weekly close below that level will open the way for a move lower towards $1,400-$1,370. We warned in our last analysis that Gold was at a very important resistance level. The rejection that followed was a bearish sign. Bears now need to break below $1,450 in order to confirm they are under control of the trend.
The material has been provided by InstaForex Company - www.instaforex.com