The Gold price has broken through the 4-hour cloud resistance and is now trading inside the Kumo (cloud). The trend is now neutral. Bulls need to break above the cloud resistance in order to change trend to bullish again.
The Gold is trading above both the tenkan- and the kijun-sen in the 4-hour chart. Short-term support is on Friday’s low at $1,325. A break below that level will be a bearish sign. A break below $1,325 will most probably push Gold towards $1,300 or lower. Resistance is at $1,345. Break above it and we could see another run towards $1,350 where we find the long-term resistance area. So far bulls have the upper hand if we take under consideration the fact that Gold has made a higher low relative to the early February low at $1,307.
Magenta line – long-term resistance
On a daily basis, Gold price remains above the daily Kumo and is trying to break above the tenkan-sen. Gold price has important long-term resistance in the $1,350-60 area and if it manages to move towards that level again, it will most probably break above it and move towards $1,400. For now, the trend favors bulls. Only a break below $1,320-$1,300 could change the trend.
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