Buyers were in arena for last 6 days and GOLD flied from 1141 to 1194 in a quick manner. But the positive development of USD Index has stopped bullish pressure on GOLD. Currently it is inside 1195-1185 band. This band levels should be considered in short term trades. To be in down trend, first we got to get below 1185. Otherwise, getting over 1195-98 will open the path to 1201 – 1210 levels.
First of all, to see the big picture, lets look at the daily chart. As we see that, GOLD has supported 1141 levels and made a reversal, carried on up to 1194 in 6 days period. But today, momentum is slowing down and a reversal signal is triggered. To continue its rise, BULLS must press more. According to this situation, 1195-1198 is so important for GOLD to continue its up trend. Traders to BUY, should wait for 1195-1198 break.
Looking at 1Hrs chart, GOLD is inside a short term up trend and there is no signal for a reversal right now. According to this we must count on daily data and wait for 1195-98 break to BUY, and also we must wait for going below 1185 to SELL. (This is an advice for middle-long term traders, short termers and scalpers can trade inside 1195-1188 band)