Gold continues to trade sideways as the price held above $1,170 yesterday and broke above $1,190. The price is trading around the short-term Ichimoku cloud and I turn to the triangle scenario now as it looks more probable.
Red lines = triangle
Blue lines= expected price path
Gold price is back above the short-term Ichimoku cloud in the 4-hour chart and looks like the sideways price action continues. Upper triangle resistance is found at $1,210. Support is at $1,170. I believe that Gold price will take some more time to consolidate before breaking lower. Nevertheless we should keep a close eye on the $1,210-15 price level because if this gets broken, $1,222 will come with increased probability of a new higher high towards $1,250.
The weekly chart remains bearish for the longer-term as price remains below the cloud resistance but in the short-term as price trades above the tenkan-sen, we could see another final bounce towards the kijun-sen and the lower cloud boundary. Critical support is at $1,130.
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