FX.co ★ Gold technical analysis for December 29, 2014

Gold price is consolidating below short-term resistance at $1,195-$1,200 area. Important support is at $1,184 and at $1,239. Longer-term trend remains bearish as long as price is below $1,240 and I favor a move towards $1,130 at least.

On the short-term chart as shown above, Gold price is trading sideways in a contracting triangle and above the Ichimoku cloud. $1,192 is important short-term support and $1,198 is important short-term resistance. If the triangle boundaries are broken, they will give a buy or sell short-term signal with $1,220 or $1,184 as targets.

Red line = resistance

Blue line = support

Gold price is testing the resistance at $1,195 as this is where the downward sloping trend line from recent highs is found. Price is below the Ichimoku cloud and this implies that trend remains bearish. I believe that a rejection at current prices will push gold back towards $1,130. A weekly close below $1,184 will also give us a bearish signal.