Gold price has been rejected at the important resistance of $1,270-80 we have been talking about for some time. If you see our previous analysis you will see we were targeting $1,270 as the target to end the upward corrective move from $1,180. The rise from the lows at $1,180 is not impulsive. Gold price action has an overlapping pattern something that makes us believe that this is a correction. However, the trend remains up as prices continue to make higher highs and higher lows.

Gold price is stil trading above the purple upward sloping trend line. This fact supports bullish positions. If Gold price falls below this trend line then bulls will have problems. The rise from $1,180 has stopped at the 50% Fibonacci retracement of the decline $1,360-$1,180. This is another sign of how important the resistance at $1,170-80 is. Short-term support is found at $1,240-35. Short-term resistance is found at $1,277-80.

The daily chart above shows us that Gold price has moved back below the longer term downward sloping purple trend line. This is good for bears. However as long as Gold price trade above the blue area, then bulls should be safe. If Gold price moves below this area at $1,230 then we will have confirmation that the upward correction is over.