Gold price has made another fake break down at $1,240 and despite reaching $1,233 it managed to reverse short-term trend and make a new higher high at $1,265. The upward move from $1,180 remains corrective as price action is overlapping. Gold price has finally reached the long-term downward sloping trend line at $1,265. We continue to believe that this upward bounce is only a corrective move and not a new impulsive wave.

Gold price is trading mostly sideways inside the channel we show in the above chart. The blue resistance area that we noted yesterday has been reached and it is important now to see how Gold price reacts. Will bulls continue to support it? Important support for bulls is the $1,230 level where the lower boundaries of the channel are.

Gold price on a daily level have touched the downward sloping long-term trend line. Now we are at a crucial price level that could decide if Gold price will move towards $1,200 or $1,400. We prefer the bearish scenario as we believe the upward move is corrective. Breaking above $1,270-80 will change our view to neutral. Our longer-term target remains $1,140.