The gold price has made a double top at $1,1330-$1,334 and is pulling back down below $1,320 again. The gold price is making lower highs and lower lows in the short run. It is testing the upward sloping interrmediate-term trend line as shown in the chart below. The price is also entering the Ichimoku cloud and this means that bulls are losing momentum while bears are getting stronger.
Support is found between $1,300-$1,290. Breaking below that level will increase the chances that the upward move from $1,240 is complete. So, is the wave E of the triangle pattern I've been talking for so long. The gold price has short-term support at $1,310. If broken, I expect the gold price to test $1,290. Short-term resistance is found at $1,323. If broken, we will then anticipate a move to challenge $1,334 highs.
Nothing has changed our preferred longer-term bearish view. Wave E could very well be complete. If not, we will get a buy signal when the price breaks above $1,334 targeting $1,350-60. With the current price setup, I feel that we might have already completed the upward move from $1,240 and we are heading lower towards $1,260. Breaking below $1,250-40 will confirm that wave E is complete.
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