FX.co ★ Gold technical analysis for February 28, 2014

Gold price has back tested the broken support trend line and is now moving lower to test the short-term low at $1,325. Gold price has made a lower high at $1,335 and this is a bearish sign. The inability of bulls to break above $1,340 has pushed the precious metal lower. As long as Gold price trades below $1,335, we remain bearish with $1,305 as a minimum target.

Short-term support is found at $1,325. Short-term resistance is at $1,335. Breaking above $1,335 will open the way to $1,360. Now the trend is down and we expect the Gold price to continue lower towards $1,305. The ichimoku cloud as shown in the chart above shows clearly that Gold is near supportive levels. Breaking below $1,305 will push the Gold price towards $1,280.

The daily chart shows how close to resistance Gold is now and why we expected the reversal at this level. Important support on a daily basis is $1,305 and important resistance is at $1,340. We remain bearish as we believe this downward move maybe the start of something bigger or at least its downward correction is not yet finished. Stop for bears is $1,335.