Gold price continued to move lower below the short-term and weekly support level of of $1,130. The rejection at $1,170 is a bearish sign, but bulls still have some hopes to bounce from the current levels. The weekly close will be very important regarding the medium- and short-term trend.
Gold price is testing the Ichimoku cloud and the 61.8% Fibonacci retracement in the 4-hour chart. The price has pulled back towards the consolidation, which was taking place during the perion from August 11 to August 13. This is a support area. I believe it is more probable to see a bounce from the current levels.
In the weekly chart, we saw gold price get rejected at the weekly 61.8% Fibonacci level. The price is seen below the weekly tenkan-sen indicator and a weekly close below this level will be bearish for the next weeks. A weekly close above the tenkan-sen will be considered as a back test that will put $1,170 resistance to the test.The material has been provided by InstaForex Company – www.instaforex.com