04.02.201412:39 Forex Analysis & Reviews: Gold Elliott wave analysis for February 4, 2014

Despite the upward move yesterday in Gold price, short-term trend remains down as Gold price did not manage to make a higher high and did not manage to break above the downward sloping trend line resistance that connects $1,279 and $1,270.

Short-term support and critical pivot point for the trend is the lows as noted by the blue area in the chart above. The $1,238 price level is important support that if broken could push Gold price towards $1,220. On the other hand, important short-term resistance is found at $1,260-70. Breaking above this level will give us target of $1,290-$1,300.

The daily chart shows sideways consolidation with Gold price moving around the important pivot price level of $1,260. Important support for bulls is the $1,230-20 price range as noted above. As long as Gold price trades above this area, there are increased chances of moving towards $1,300-$1,320. Next few days will be important because in case the downward correction in US markets continues, demand for a safe haven will bring buyers into Gold and push the price higher.