Gold price reached important short-term support yesterday at $1,320 where the 61.8% Fibonacci retracement is found. This is a level where I prefer opening long positions as the stop is at $1,300. The upside potential is big as we can see levels up to $1,370 or even new highs.

On the 4 hour chart as can be seen above price bounced off the 61.8% Fibonacci retracement. Price is inside the cloud and this implies short-term trend is neutral. There is no confirmation yet of a bullish reversal. This will be confirmed on a break above $1,333. Oscillators are turning upwards from oversold levels so we could see more upside.

Green line -long-term resistance trend line

Black line - medium-term trend support trend line

Gold price is above the weekly cloud and is making higher highs and higher lows. However for a Gold to continue towards $1,400-$1,500 we must break above the long-term downward sloping green trend line. Breaking above it will confirm the bullish reversal at $1,045. If the black line is broken downward, we should expect a deep pullback towards the cloud support and the $1,200-$1,180 level to be seen.