FX.co ★ Gold Wave analysis for August 28, 2014

Gold price did not make any much movement yesterday. It remained above short-term support and below resistance. Our view remains bullish as we should see a strong bounce towards $1,350 from the current support levels.

Gold price has broken out of the green downward sloping channel. It has started making short-term higher highs and higher lows in the area of $1,280-$1,290. Support is at $1,280. Breaking below that level will put $1,270 in danger. Resistance is found at $1,291-94. Breaking above that level will push Gold price towards $1,305-10.

Our longer-term view is depicted in the daily chart above. We are still inside the big sideways triangle formation and we should see at least one more final upward move towards $1,340-50. Breaking below $1,270 will be a bearish sign for bulls and will open the way for a downward push to $1,200.