FX.co ★ Gold technical analysis for May 1, 2015

Gold price plummeted on Thursday back below $1,200 and is testing our previous lows at $1,175. The bullish flag pattern was canceled once the support $1,190 was broken and the weekly chart becomes even more bearish if we end the week around $1,180. My longer-term view remains bearish.

Red line = support

Blue line = resistance

Gold price continues to trade since late March inside a trading range. Despite some short-lived spikes below this range, Gold price holds above $1,180 and below $1,223. Gold price has been moving sideways and this corrective pattern has frustrated all traders as the swings and false signals are plenty. The weekly chart is more clear.

The weekly chart has turned very bearish again if we observe the long tail above this week's candle body. Price got rejected once again at the kijun-sen and is now below the tenkan-sen once again. Things do not look good for Gold and today is the last day for bulls to try and save the day. As long as Gold price is below the 61.8% retracement and below the Ichimoku cloud, I will continue to expect a move to new lows near $1,000.