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09.06.2020 07:22 PM
Gold price bounces towards key short-term resistance

Gold price has bounced off the Daily cloud support and has reached the $1,715-20 area as expected. By the Ichimoku cloud indicators this area is important resistance and could be decisive for the move in Gold price over the next few weeks.

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Gold price is above the Cloud. This is a bullish sign, Gold price has crossed the tenkan-sen (red line indicator) and is challenging the kijun-sen (yellow line indicator). The Chikou span is above the candlestick formation and this is a bullish sign. The chart so far shows signs in favor of bulls. However bulls need to show more signs of strength. If the tenkan-sen (red line indicator) crosses above the kijun-sen (yellow line indicator) then we will have a strong buy signal. This would be good news for bulls. Recapturing $1,720 area and holding above it would do it. A rejection would be a bearish sign. Support remains key by the cloud at $1,670. Breaking below it could push price towards $1,600.
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