Gold price is challenging important support levels here.There are many chances of a bounce from current levels towards $1,300-$1,305. Recapturing the $1,300 level is very important for bulls. The longer price stays below $1,300 the more vulnerable it is for a break below $1,280 and a move towards $1,250-60.
Black line - resistance trend line
Blue line - RSI support
Red rectangle - target if support fails to hold
Gold price has support at $1,280 and resistance at $1,300-$1,305. Breaking above resistance at $1,300 will open the way for a move to new highs. Failure to hold above $1,280 will open the way for a move towards $1,250-60 minimum but with $1,225-15 the most probable target area. The RSI so far holds above the blue support trend line. This makes me believe that it is very probable to see another bounce towards $1,300. Breaking below the blue support trend line we should expect heavy selling to come and push price to $1,250-60.
The material has been provided by InstaForex Company - www.instaforex.com
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