Gold price got rejected and reversed strongly from our target area of $1,310-15. Price returned back to its major support of $1,290-80 area. It is important for bulls to break above $1,310 and for bears to break $1,280.
- Red line - important short-term trend line resistance
- Red rectangle - bounce target
- Green rectangle - major support area
Gold price bounced off the major support area as expected and reached our short-term target. Bulls were not strong enough to break above the red trend line resistance and price got rejected. This was a bearish sign. However bulls remain hopeful as long as price remains above the major green support area of $1,290-80.
Bears on the other hand remain in control of the medium-term trend after topping prices back in February, while Gold continues to make lower highs, showing increasing weakness. Breaking below $1,280 will open the way for a move towards $1,250 at least. Breaking above $1,310 will increase the chances for Gold price to make new yearly highs.