Gold price remains above the support area of $1,117 and has not broken down yet. This increases chances of a bounce. If support fails to protect metal from falling further, we should expect a push below $1,100 to be seen.
Gold price is trading below the Ichimoku cloud. A trend is bearish as we reacheda a lower high at $1,150. Short-term resistance is seen at $1,130 while support, as I said before, is found at $1,117. A break above a high
of $1,150 will probably push the price to the area above $1,180.
The weekly chart remains bearish as the price is below the weekly tenkan-sen (red indicator). Bulls need to push price higher from the current levels. As $1,115-$1,117 is important short- and medium-term support, so a bounce should be expected from the current levels. The rejection at 61.8% retracement is also important resistance and I believe it will be tested.The material has been provided by InstaForex Company – www.instaforex.com