Gold is pulling back but the overall trend remains bullish. We have a weekly breakout and a back test in play. A short-term support that could justify a reversal is very close.
In the 4-hour chart, the price is above the Kumo. RSI (5) is oversold and turning higher. Support is at $1,260. I see low chances of moving below the cloud. It is highly possible to see an upward reversal soon to new highs above $1,300. Resistance is at $1,280.
Black line -long-term resistance
Blue line -long-term support
The gold price has broken last week above the long-term trend line resistance. This week we see a back test. I expect the price to hold above it and continue higher towards $1,450 over the coming months.
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