FX.co ★ Gold technical analysis for May 4, 2015

Gold price remains above the support area of $1,180-75. Today we could see a bounce towards the short-term resistance of $1,200, but the trend remains unclear as the trading range remains unbroken. I prefer to be neutral in the short term, while my longer-term outlook remains bearish.

Gold price is below the Ichimoku cloud in the 4-hour chart. The short-term trend is bearish. Resistance by the cloud and the 61.8% retracement is at the area of $1,200. Support is at $1,170 where we saw a low last week. The price bounced quickly from that area but remains fragile. Breaking above $1,200 will be a sign of strength for bulls.

The weekly chart remains bearish especially after last week's long-tailed candle after the second rejection by the kijun-sen. The weekly chart remains below the cloud resistance and still below the 50% retracement. Huge support is at $1,130. If it is broken, I expect the level of $1,000 to be reached.