Gold price has bounced as expected towards $1,200. Price reached $1,197 and got rejected. Gold price is expected to continue lower towards $1,160-50 area. Short-term trend is bearish. Important long-term support at $1,160-50.
Gold price is trading below the Ichimoku cloud on the 4-hour chart. Price is making lower lows and lower highs. The rejection at the Ichimoku cloud was expected although I cannot rule out another try at $1,200-$1,203. Short-term support is at $1,180. If broken we should move towards the 50% Fibonacci retracement.
The weekly rejection is unfolding as we expected. Gold price is expected to move towards the tenkan-sen support (red line indicator) at $1,160. We cannot rule out a print below that support level but overall a weekly close below $1,160 will not be a good sign for bulls. For the time we remain cautious waiting for prices to move towards $1,160-50. Aggressive traders could short Gold at this bounce with $1,220 stop and target $1,160-50.The material has been provided by InstaForex Company – www.instaforex.com
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