Gold price has fallen towards its first short-term support at $1,312 and has reached our target of reaching the lower channel boundaries. Gold price remains in intermediate-term uptrend and above the 4-hour Ichimoku cloud support.
The double bottom in the 4-hour chart as shown above could prove bullish if Gold price makes a new higher high above $1,326. Breaking above these price levels will push the precious metal towards $1,340-50. Short-term resistance is found at $1,325 and then at $1,332. Short-term support is found in the $1,310-15 price range.
If Gold price breaks below $1,310, then we will increase probability of seeing a larger degree downward correction that will show up in the daily chart. If $1,300 is broken, then there is increased chance of pulling back towards $1,270-60. Currently, Gold price is trading at its important downward sloping red trendn line resistance as shown in the daily chart above. Gold price could give a final break out but bulls should be very cautious and raise their stops.
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