FX.co ★ Gold vulnerable but still respecting support

Gold price remains below $1,600 and under pressure. Price has not broken below the last low at $1.573 but instead it respects so far Kumo (cloud) support. We have a first weak sell signal and soon we will have its confirmation or an upward reversal.

In the 4 hour Ichimoku cloud chart of Gold as shown above, we see the tenkan-sen (red line indicator) crossing the kijun-sen (yellow line indicator). This is a weak sell signal. Price is now testing the upper boundary of the Kumo (cloud). If price breaks below $1,573 we should expect price to fall towards $1,550 if not lower. We have been warning from previous posts that a price decline towards $1,570 was our first target and we now see potential for lower. Short-term trend is bearish.