Gold Price Declines Towards $1320
New York (Sept 12) Gold price has declined towards $1,320 and has reached so far as low as the 50% Fibonacci retracement of the rise from $1,302 to $1,353. Price is still trapped inside the $1,300-$1,375 range while making higher lows, giving bulls slightly more chances of success than bears.
Stochastic is oversold turning higher, price is above the 4-hour cloud, support is at the 50% and 61.8% Fibonacci retracement, and resistance is at $1,338. Short-term trend remains bullish as long as price is above the cloud.
The bullish scenario remains valid as long as price is above $1,302. However bulls will need to break eventually above $1,375 because another rejection at $1,350-70 area will increase the chances of a big pullback towards $1,200-$1,180.
Black line - trend line support
The daily candles are inside the Kumo area of neutrality. Price remains above the black trend line support. The upward move that started from $1,302 could very well be wave B or just waves a and b of B, implying that a new higher high will come but not above $1,375 and then we will see a deeper correction towards $1,200.