Gold made a strong upward move towards $1,255 yesterday, but it also performed a strong pullback to erase most of its gains. However, the pullback did not technically hurt the bullish scenario. A trend remains bullish after the breakout, and we still expect new highs towards $1,300.
Green lines - short-term support
Yellow line - stop for bulls
The price is above the Ichimoku cloud and the short-term support is seen at $1,220. The price is bouncing higher to what can be the next wave up towards $1,270. As long as gold price is above yesterday's low, bulls have nothing to fear. If however support fails, then we should expect heavy selling to push the price towards $1,170 at least.