07.05.201411:02 Forex Analysis & Reviews: Gold technical analysis for May 7, 2014

Gold price mainly consolidated yesterday between $1,300 and $1,315. Short-term trend is up. A buy signal will be given when price breaks above $1,315 with $1,331 as the first target. Our intermediate-term target is near $1,340-$1,360 for the end of wave C. Our preferred wave scenario remains the one where we have completed wave 1 down from $1,391 and we are now inside corrective wave 2.

Gold price remains above the Ichimoku cloud as it can be seen in the 4-hour chart above. This is a bullish sign supporting our view that we are to expect the rise to continue. Gold price has important support at $1,280. Short-term support is found at $1,304, if broken we could see price drop by $10. Short-term resistance at $1,315 if broken will push price towards previous highs at $1,331.

The daily chart above depicts what I expect from Gold price. I still see as a very possible outcome a move towards the 61.8% Fibonacci retracement or even higher. As long as support at $1,275 is held on a daily closing basis, we remain bullish with the $1,350 target. A break below $1,268 on an intraday basis, should confirm that the upward bounce is over and we are heading towards $1,200.