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Gold price is making new lows relative to August. Short-term trend remains bearish as we explained in previous posts. Today we take a look at the weekly chart with the use of the Ichimoku cloud indicator. The Chikou span (black line indicator) has just crossed below the candlestick pattern (bearish). Price is trading below both the tenkan-sen (red line indicator) and the kijun-sen (yellow line indicator). However price remains above the Weekly Kumo (cloud). Support by the weekly cloud is found at $1,860. In our previous analysis we noted that we expect Gold price to form a bottom around this area. Using the Ichimoku cloud indicator we confirm the presence of support area around $1,850-60. Gold price remains vulnerable to the downside and bulls do not want to see price enter the Kumo. This will change weekly trend to neutral. Bulls want to see price bounce off the cloud support by forming a higher low and then take out the resistance around $1,925.
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