Gold price bounced off the 61.8% Fibonacci retracement and the $1,245-40 area as expected. Price should test the $1,260 short-term resistance area. A rejection there will open the way for a push towards $1,200, but if the week closes around $1,260 and higher, we could have a bullish reversal sign on a weekly basis.

Gold price is trading above both the tenkan- and kijun-sen but below the 4-hour Kumo. Price needs to break above $1,260-70 cloud area to turn short-term trend to bullish. First important short-term resistance is at $1,260. Support is at $1,241 and if broken we could see $1,230. However I believe downside is limited....a bounce higher is what we should focus in the short term.

Black line - long-term resistance

Blue line - long-term support

Gold weekly chart could shape up to be a very bullish one as the candle formation of this week touched the weekly Kumo (cloud) support as expected and bounced higher. This long-tailed candle is a bullish reversal sign and will strengthen the higher we close this week. I'm short-term and longer-term bullish about Gold.