Gold price is breaking short-term support and is heading towards our target of $1,245. Gold weakness is expected for the start of the week but overall I can see a bigger longer-term upward reversal coming soon.
Gold price is making lower lows and lower highs. Price is approaching the 61.8% Fibonacci retracement of the latest rise and this is important support. If we break below $1,245 we should expect Gold price to go towards $1,230. Trend remains bearish in the shortterm and the Gold pullback is unfolding as we expected from $1,280.
Black line – long-term resistance trend line
Red line – support trend line
Blue line – long-term support trend line
The Gold weekly chart as expected is moving towards the weekly Kumo (cloud) support at $1,235-45 area. The rejection unfolded as we expected two weeks ago at $1,295. Now we prepare for a longer-term reversal. I expect Gold to reverse upwards from the $1,200-$1,245 area. I remain longer-term bullish.
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