Gold price continues its short-term upward bounce in what I continue to believe is an erratic corrective bounce that will soon reverse lower. My short-term target is $1,260-65 and I my longer-term target is $1,150-$1,050.
Red line = resistance
Blue line = support
Gold price remains below the Ichimoku cloud in the daily chart and it is time now to see if we see a rejection and a reversal. This is my preferred scenario once Gold price reaches $1,260-65 area. I believe that the bouce from $1,180 is corrective and we will soon see a strong downward reversal in Gold price that will eventually bring price below $1,180.
Green line = price channel
In the short-term 30 minute chart we see Gold price inside the upward sloping channel from $1,230. Breaking below $1,240 will confirm the end of this upward move as price will be out of the upward sloping channel. I believe that bulls have more to lose at current levels and I believe it is preferred to go short once support levels are broken than trying to go long at current levels. Maximum upside I see for Gold price is around $1,280.