Ichimoku cloud analysis of Gold

Gold price is trading at $1,700. Trend remains bearish as price continues making lower lows and lower highs. Gold weekly chart shows that for a second week on a row price is below the Kumo. All parts of the ichimoku indicator continue to confirm bearish trend.

In the weekly chart price is below the Kumo, the Chikou span (black line indicator) is below the candlestick pattern and might find support at the cloud at $1,580. So our next target and support is at $1,580. This target will be achieved if price does not bounce from current levels of $1,700-$1,690.

Green lines - bearish channel

Red line - support

Gold price is at the lower channel boundary and breaking below the red support trend line. Next week is very important. If price continues to remain under pressure then we might see a sharp decline without any considerable bounce, towards $1,580-$1,500.