The gold price has managed to hold above the Ichimoku cloud in the 4 hour chart and above the upward sloping trend line. The gold price holds support levels and the chances of an upward bounce towards $1,330 remain good.
The gold price is expected to bounce from the current price levels and reach a higher level above $1,315.50. This will also confirm our view that the gold price is expected to make a move above $1,331 highs in order to complete wave C that started from the lows at $1,268. Short-term support is found at $1,284 and short-term resistance is at $1,295.
The gold price remains above the critical daily support of $1,275. I believe it is more possible to see a move towards $1,350-60 than a breakdown below $1,270. Ichimoku cloud resistance is found at $1,315. Breaking above that level will push the price to challenge $1,331. I believe it will break it. The longer-term pattern remains bearish. The price should make a top near the 61.8% retracement to complete wave 2. The stop for bears is $1,391. When and if the price reaches $1,350 we will re-evaluate this bearish scenario. Until then, we should focus on support at $1,275-70 and at $1,315 resistance. I favor a move higher.
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