Gold price made a pull back as expected from $1,298 to $1,276 while in our previous posts we were talking for a pullback towards $1,270. Trend remains bullish as price remains inside the bullish channel and we continue to expect a move towards $1,300 and higher.
Purple lines – bullish channel
Green rectangles – support levels
Gold price pulled back towards the green support level and is now bouncing back towards its recent highs. Our third target of $1,300 has almost been reached. Support is at $1,270-64 area and I believe we can see another pullback towards that area this week. Holding inside the channel would be important for the medium-term bullish trend. We have some bearish divergence signs in the 4-hour chart that imply that any weakness should be temporary. Major support is at $1,240 area and if broken the bullish scenario will be canceled.
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