FX.co ★ Gold Technical analysis for July 29, 2014

The Gold price is trying to break above the sideways consolidation it started yesterday. A short-term trend is up as the upward move from $1,287 looks incomplete. The double bottom near $1,290 may be strong enough to cancel my bearish scenario and push the price above $1,326. However, to make this happen we have a strong test today at $1,310-12.

The Gold price is now testing the 61.8% retracement and the Ichimoku cloud resistance at $1,310-12. Next resistance is at $1,316. Short-term support is found at $1,300. Breaking above $1,315 will increase the chances of breaking to new highs above $1,326 towads $1,350-60. Breaking below $1,300 will increase the chances of making a lower low below $1,287.

On a daily basis, the Gold price is supported and holds above the Ichimoku cloud. Although our preferred scenario is bearish expecting a downward move to $1,000, it is now put to the test. The Gold price has formed an important area of critical lows at $1,287-90. Bulls should feel confident as long as the price is above that area. On the other hand, bears will feel confident if this support area is broken.