Gold price made a new low towards our next target of $1,120 where the 78.6% Fibonacci retracement of the entire 2015-2016 rise is found. Trend remains bearish. However these price levels are very important as from these levels we could see at least a short-term bounce.

As said above, price reached very close to the 78.6% Fibonacci retracement of the entire rise. A strong bounce is justified from current levels. $1,220 could be the first target as this is the lower cloud boundary. Price is also inside a downward sloping wedge. If broken upwards we could even see a bounce towards the start of the wedge around $1,280-$1,300.