Gold price broke below $1,200 yesterday confirming the short-term top we expected to see and the reversal in prices. My first short-term target is at $1,180 but we could see a bounce to $1,210 first. Gold has entered a corrective phase.
The bearish divergence in Gold price is paying off. Price made a new low yesterday but still holds above the 4-hour Ichimoku cloud. A bounce towards $1,210 is justified. Eventually, prices are expected to move towards $1,180 for the test of the 38% Fibonacci retracement.
The weekly rejection at $1,220 we expected is materializing. Gold is expected to move lower for the next couple of weeks towards $1,160-70 area. I believe Gold price will be a buy there as prices at $1,122 have made a very important long-term low. I expect a corrective phase to last for a couple of weeks.
Then the metal could resume the uptrend towards $1,300 at least.
The material has been provided by InstaForex Company – www.instaforex.com
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