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Gold price is trading just below $1,790. Bulls could not hold for much longer prices above $1,800 and price is now pulling back towards key support area. Over the next few sessions we will know with certainty if the break out was a real one or a trap for bulls.
Gold price is back testing the broken trend line from above. Bulls want price to bounce off the blue trend line and continue higher. On the contrary bears want price to break back below the blue trend line and start making lower lows and lower highs. Short-term support is at $1,778-75 area, as we mentioned in our Ichimoku cloud analysis yesterday. Concluding, bulls need to step in now and defend the $1,780 area and not allow price to fall below it.
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