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

Gold price is trading near $1,265 after having broken the sideways triangle and making a new lower low in the daily chart,similar to the $1,268 it made in April. Another important bearish signal is the fact that we had a daily close below $1,275 and this implies that more selling pressures should come soon and push price lower.

Gold price is trending lower and is below Ichimoku cloud resistance. Short-term support is found at $1,260 and if that level is broken we should expect Gold price to fall another $20 per ounce. Short-term resistance is found at $1,280 and then at $1,300.

Gold price has found support at the 61.8% Fibonacci retracement of the rise from $1,180 to $1,391. If this support holds, we could see a bounce towards $1,280-$1,300. Trend is down as price has made a new lower low that is clearly visible in the daily chart. Usually when such a breakout occurs we see more selling pressures and not just only one day. So I expect more selling to push price towards $1,240.