Gold price has moved above $1,300 after pulling back towards $1,290 as expected. Our next target was at $1,310 and as long as price remains inside the bullish short-term channel, we could see a move higher towards $1,313 or even $1,322.
Red line – RSI support
Blue lines – short-term bullish channel
Short-term trend is bullish. We called for an upward reversal around $1,285 and Gold price has so far reached our first target. Price has reached the 38% Fibonacci retracement resistance of the entire decline. Support is at $1,296-90. A break below this level could bring another round of selling pressure and a push below $1,280 would confirm we are heading towards $1,250-60. On the other hand if we continue to see higher highs and higher lows while the RSI holds above the red support TL, we should then expect price to reach even $1,322.
The material has been provided by InstaForex Company – www.instaforex.com