Gold price has broken above short-term resistance and is expected to move towards $1,315. Bulls need to recapture the $1,300 level as soon as possible because the more they stay below it, the lesser are the chances of breaking it, resulting in a rejection.
Black line – resistance trend line
Red rectangle -target
Blue rectangle – short-term resistance (broken)
Green rectangle – major support
Blue lines – bullish divergence
Gold price has respected the support area of $1,290-$1,280 and has produced a bounce towards the $1,300 resistance level. Gold price is expected to continue higher towards $1,315 if bulls can manage to recapture the $1,300-$1,302 level. Inability to break above this area could push Gold price back towards $1,290. Major support remains at $1,290-80 area. Breaking it will open the way for a move towards $1,250-$1,200. This would be an important bearish sign. So as long as price is above it, bulls hope for a new leg higher starting soon. Major resistance is at $1,315-20 area and breaking above it will open the way for a move towards $1,350.
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