FX.co ★ Gold technical analysis for February 24, 2014

Gold price has broken the short-term downward sloping red trend line resistance as we noted in our last analysis. This helped Gold price form a short-term bottom and reversal pattern that suggested the price would reach previous highs. We mentioned in our last post that Gold price was supported by the Ichimoku cloud indicator and we should expect bulls to push higher specially if the short-term resistance of $1,325 was broken.

Short-term resistance is the previous high. We expect this high to be broken. If broken, next target will be $1,345-50 and after that $1,370-90. Short-term support is found at $1,320. The entire $1,320-$1,290 area is support for the Gold price.

Gold price on the daily chart has also broken the longer-term downward sloping red trend line resistance that confirms our view that we are heading towards $1,400. We remain bullish with stops raised to $1,320.