The scenario where we can see the Gold price rise above $1,331 is losing points every day. There are now more chances to see Gold price break down below $1,270 and move to $1,200. Gold price has been rejected at the upper triangle price range and is trying to break below the short-term support area of the Ichimoku cloud at $1,290. Gold price looks weak and unable to challenge $1,315.
A break below $1,290 will push Gold price towards $1,280. A break below $1,280 will push Gold price towards the important lows of $1,275-$1,268 with increased probability of breaking them. As long as Gold trades below $1,315, we are bearish. We prefer being short if price is near $1,304-$1,307 with the $1,315 stop. If price goes to $1,280-85, we would prefer being long with the $1,270 stop reverse.
However, we are longer-term bearish and that is why taking a long position is a counter trend and only high risk traders should follow this strategy. Our preferred strategy is to remain short as long as price is below $1,310-$1,315. Our longer-term view sees Gold price near $1,100.
The material has been provided by InstaForex Company - www.instaforex.com
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