FX.co ★ Technical analysis of gold for October 3, 2016

Gold price is trading near its trading range lows. Price is testing important support but bearish momentum is not very strong. I expect a bounce from the current levels at least towards $1,340-50.

Gold price is trading below the 4-hour Ichimoku cloud and just above the 78.6% Fibonacci retracement. Gold price continues to make lower lows and lower highs. Short-term resistance is at $1,320 while support is at $1,310-$1,300.

Red lines - trading range

Black lines - trend line support

Gold is testing daily cloud support at the lower cloud boundary. Price remains above the medium-term trend upward sloping trend line. The sideways move continues and longer-term trend remains neutral with no clear direction as we remain trapped inside the trading range. Being at the lower boundaries of the range, I prefer being bullish with tight stops at the previous lows.