Gold price has broken above the short-term downward sloping channel and has given a new bullish signal. However with the medium and longer-term trend still bearish, bulls will need to show more signs of strength. In the 4 hour chart we can see a bullish flag being formed as price is moving sideways after the sharp rise from $1.046.
Price is back above the Ichimoku cloud in the 4 hour chart as shown above. Gold price has paused the rise at the current level which is also the resistance of a previous high made back at December 4th at $1,088. So bulls will need to break above $1,088 to confirm the breakout.
The weekly chart is still promising and I tend to favor the bullish side with a target around $1,120-30. The weekly chart remains below the Ichimoku cloud inside the downward sloping wedge but the stochastic is oversold. With price near the lower boundary I favor the upside.