Gold prices have made a new higher high as expected by our last analysis. Prices have now formed three waves up and the upward correction could very well be over. However, there could be more upside potential towards our initial target of $1,260-70.

Gold prices are in a short-term uptrend. Short-term support is found at $1,230-25 and short-term resistance is found at $1,250. Prices have reached the 38% Fibonacci retracement once again and we might see another reversal in this area.The purple upward sloping trend line is important for the short-term trend. If it holds we can see $1,260-70. If it breaks, then chances that the upward correction is over will increase. If the intermediate low at $1,217 is broken, we will have confirmation that the upward bounce is over.

The daily chart continues to show how important the black neck line resistance is. Prices trading below that neckline and the purple trend line is a sign that longer-term trend remains down. So we remain bearish biased with a longer term target of $1,140.