Gold price has started an upward breakout on Friday by breaking above $1,218 and the sideways consolidation range. Bulls are in control, but as long as price is below $1,235-40 bulls will need to be very cautious.

Gold price has already backtested the breakout range earlier today at $1,218. Price is above the Ichimoku cloud and above the trading range of last week. Gold price is short-term bullish as long as price is above $1,215. Resistance is found at $1,235 and $1,240. This is important resistance as can be seen on the daily chart below.

Gold price is forming a triangle on the daily chart, and this implies that bulls should not feel very confident unless we break out of this triangle pattern thus above $1,240. On the daily chart, prices are holding above the Ichimoku cloud but below the upper triangle boundaries. This is a good place to go short with stop reverse at $1,240. If resistance is broken, we should expect gold price to test $1,270-$1,300. A rejection at current levels could push the index towards $1,180 again.