FX.co ★ Gold technical analysis for February 3, 2015

Gold price continues to trade in a neutral range for the short-term increasing the chances that we are currently in a consolidation range before a new upward move towards $1,330. Gold price has short-term support at $1,250 and short-term resistance at $1,288.

Green line = support

Black line = resistance

The gold price is trying to move back above the Ichimoku cloud and the black line resistance. If Gold price manages to break above those two resistance levels, I would expect a final leg up towards $1,330. If, on the other hand, we see a rejection at the current price levels and the gold price breaks below $1,250, we should expect a move towards $1,220 or even below $1,200.

Red lines = horizontal support levels

Gold price has bounced off the 38% Fibonacci retracement and as long as it holds above it we have more chances of seeing new highs towards $1,330. So bulls should use $1,250 as a stop reverse level that and if it is broken, traders should prefer short positions with $1,220 as the first target.