FX.co ★ Technical analysis of gold for December 21, 2016

Gold remains in bearish trend targeting $1.120-$1,100. As long as price remains below $1,150-60 the target is lower. Longer-term view remains unchanged waiting for a big trend reversal.

Red lines - bearish channel

Gold price is trading below the Ichimoku cloud and inside the bearish channel. Price continues to make lower lows and lower highs. Resistance is at $1,143 for the short-term. Short-term trend changes however only on a break above $1,150-60. Support is at $1,125. Breaking it will push price towards $1,100.

Gold price is close to the 78.6% Fibonacci retracement support. Wedge resistance is at $1,160. Breaking above this area will open the way for a full scale reversal towards the lower cloud boundary at least. Gold price is very close to important reversal levels. Bears need to be very cautious.