Gold price finally reached our long-term downward sloping trend line as shown in the chart below and reversed. In our previous analysis we mentioned that there was increased chances of a pull back since Gold price has reached an overbought level and our target price. Gold price after reaching $1,332.50 has reversed and is now a lower than $1,320 testing the short-term support area we noted yesterday.

Gold price is heading towards the $1,315 support and if broken we could see the price move towards the lower channel boundaries. Breaking below the upward sloping trend line could start a decline towards the Ichimoku cloud support at $1,280.

The reversal on the daily chart is evident. The reversal came right on our long-term downward sloping red trend line. This confirms the top and increases the chances of seeing a pull back. We noted several times before in our analysis that bulls should start taking profits and raise their stops as the probability of a pull back has increased. Support is now found at $1,315 and if broken we will test $1,300. Our view is neutral to bearish as we think we have see a short-term top in Gold price.