FX.co ★ Gold price above short-term support, risk for a move towards $1,370-75

Gold price has reached our short-term pull back target of $1,400. Price is testing short-term support at $1,400 and we could see another leg lower towards $1,370-80 if we break below $1,400. Medium-term trend remains bullish.

Green line - support trend line

Red rectangle - short-term horizontal support

Blue rectangle -target if red support fails to hold

Gold price continues to make higher highs and higher lows. Now we are at a phase where bulls expect a higher low to be formed. Most probably this low will be close to the break out area of $1,350-60 but not necessarily that low. Most probably price could touch and test the green trend line support before continuing higher. The target area is at $1,370-80 if price breaks below $1,400. Resistance is at $1,416.