Gold price as expected pulled back towards the cloud support but also broke below in early Wednesday trading. The dollar strength seems to be affecting the gold price negatively as the technical picture has weakened.

The 4 hour cloud support is broken. Next important support is at $1,317, the post CPI report is low, and next the February lows are at $1,307. Resistance is at $1,331-36-41. Taking a look at the bigger picture, it is important for Gold bulls to hold the price above $1,300-$1,290.

Magenta line -long-term resistance

Blue line - long-term support

The second rejection at the long-term resistance of $1,350 was a bearish sign, and we mentioned this at a previous post. Weekly support is at $1,320, and the next one is at $1,300. Breaking below these two levels will be a very bearish sign that could even push prices towards the long-term blue trend line support. Bulls need to step in and react very fast to save the bullish scenario. Look for clues also on what the Dollar index does. Bullish Dollar is bad for Gold prices.