Gold price has reversed higher above $1,200 after reaching the 38% retracement of the rise from $1,141 to $1,222. There are increased chances of a new upward breakout towards $1,240 or even $1,260.

Red line = resistance

Gold price as can be seen on the 30-minute chart above has made a corrective pullback towards $1,185 and is now trying to start a new upward move. Resistance is found at $1,210 and at $1,222. Support is found at $1,200 and at $1,185. If resistance levels are broken we can see an upward move towards $1,240 or even $1,260. If support fails we can see a deeper pullback towards $1,140. Gold shows signs of strength and that buyers support it easily. My bearish long-term view is now having less chances of success than a bullish long-term reversal. My long-term view is now mixed as the bulls have made an impressive come back that can change the long-term trend.

The daily chart remains bearish as price is below the Ichimoku cloud. Breaking above $1,222 will be a very bullish sign for Gold bulls. Important daily support is at $1,170. Breaking below that level will imply that bears are retaking control and that Gold price will challenge the lows at $1,140-30. I feel that this scenario has the least chances.