Gold prce has made an impulsive decline from $1,391 to $1,285. This impulsive decline together with the fact that the upward breakout was fake, makes me believe that Gold price will have more downside pressure if the price remains below $1,400. I believe that over the next few months, we will see Gold price making new lower lows than $1,180 towards $1,100. Gold price in the short-term is oversold and that is why my strategy is to wait for an upward bounce before enterish short positions.

Gold price has finally broken out of the downward sloping red trend line. This is an initial reversal sign and a clue that the short-term bottom might be in. As long as price trades above $1,285, there are increased probabilities of moving higher towards $1,322. Short-term resistance is found at $1,308-10. Short-term support is at $1,285. I expect Gold price to retrace at least the 38% of the decline.

Gold price is expected to make an upward bounce to reach the weekly Ichimoku cloud resistance and retrace the first decline from $1,391. I believe this upward move should be sold as my view is bearish in the long-term. I expect the lows at $1,180 to be broken before the end of this summer. I expect Gold to reach at least $1,100.