Gold price bounced off support yesterday at $1,285 to $1,293. Short-term trend remains bearish and as long as price remains below $1,300 there is still danger of seeing a sharp decline to $1,250-60 or lower.
Green rectangle - major support area
Red rectangles - targets
Blue rectangle -resistance
Red line - long-term support trend line
Gold price holds above the major support area of $1,290-$1,280. Bouncing off this level is expected but bulls will need to break above the resistance at $1,324.50 in order to hope for a bigger move higher towards $1,350-60. If support at the green rectangle area fails to hold, Gold will be expected to move lower towards $1,250-60 at least. The RSI is providing some bullish divergence signs, so it is most probable to see a bounce towards $1,300 than break support right away.The material has been provided by InstaForex Company - www.instaforex.com