Gold price is bouncing from its recent low at $1,170. Gold price completed 5 waves down from $1,215 to $1,170 and is now making an upward corrective bounce that is most probably not going to break above the 61.8% retracement.

Gold price has already reached the 50% retracement and the Ichimoku cloud resistance. A move towards the 61.8% retracement and another touch of the cloud resistance could not be ruled out yet. However, if the price breaks below $1,182, we should not expect a bigger bounce.

The weekly chart remains bearish. The decline from $1,307 is impulsive whereas the upward bounce from $1,130 is corrective. There is a small chance that the decline from $1,224 is only wave B so we could see a new short-term high as wave C towards $1,250. The cloud resistance and the kijun-sen provide strong resistance levels so bulls need to be very cautious.