Gold price rise from $1,275 to $1,325 is most probably the first of the three parts of an upward correction. Gold price has reached the 38% retracement of the decline from $1,391 and as this is a very strong resistance, the first try to break above it has failed. This rejection could lead to a larger pull back in Gold price towards $1,300-$1,295.
Gold price is trading inside an upward sloping channel, and if the channel is broken, then we should expect the price to challenge the Ichimoku cloud in the short-term 4-hour chart shown above. The Ichimoku support is found at $1,300-$1,295 in the short term. The closest support level is at $1,315. If this level is broken, then we should expect to see a move towards the lower channel boundaries at $1,310.
The daily chart shows that Gold price has reached important resistance levels. A pull back inside the middle of the cloud is very possible, but the upward correction is probably not over yet. I still expect $1,350 to be reached.
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