Gold price made a new lower low yesterday but it was not confirmed by the RSI and the major support area of $1,290-80 was still respected. Gold has now many chances of making another move above $1,300.
Green rectangle - major support area
Blue rectangle - short-term resistance area
Blue lines - bullish divergence
Gold price so far respects support at the green rectangle area. The bullish divergence signs in the 4 hour chart as shown above make me believe that there are a lot of chances we see a move towards at least $1,310. Breaking above short-term resistance of $1,296 will give me a bullish short-term signal that price will be heading higher above $1,300. As long as we hold above the support area of $1,290-80 we remain cautiously bullish.The material has been provided by InstaForex Company - www.instaforex.com