Gold price has reached our short-term pull back target of $1,300 as expected from $1,320. This is where bulls need to react in order to keep the medium-term trend bullish. If Gold bulls want to see $1,350 they need to support the precious metal now and push prices higher.
Purple lines – bullish channel
Yellow rectangle – support area
As we pointed out in our past analysis, a pull back towards $1,300 at least was imminent. Price has reached the previous high that was once resistance and is now support. Bulls need to hold above this level. A strong bounce and a move above $1,317 will open the way for a new higher high and maybe a move towards $1,350. If price continues to make lower lows and lower highs, we could then see a test of the lower channel boundary around $1,280. This would be crucial for the longer-term trend.
The material has been provided by InstaForex Company – www.instaforex.com