Gold price continues to trade below $1,200 and there are more chances of a downward break than a push above $1,200. I remain medium-term and longer-term bearish. Important support that needs to be broken is at $1,130 and this will give me $1,000 or even $900 as a target.
Blue line= trend line support
I believe there are high chances that wave C was completed at $1,200.50. The price is moving lower in an impulsive pattern whereas the bounce could not manage to move above the 61.8% retracement. The price is also below the Ichimoku cloud and is testing the blue trend-line support. So, it is important to see if support at $1,178-80 holds today. If not, a low of $1,170 is likely to be tested.
Gold price in the daily chart remains below the cloud and below the tenkan- and kijun-sen indicators. The price has bounced from $1,140 in a corrective manner and that is why I continue to believe we should expect one more downward sloping impulsive wave that will bring the price towards $1,000.
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