Gold price has staged a three wave upward move so far from $1,130 and has managed to get close to the important resistance trend line at $1,240-50. This trend line comes a long way back from $1,800 and every time Gold price reached it we saw a strong reversal lower. Will we see the same thing again? Resistance is at $1,250 and as long as Gold remains below it then we should expect a downward reversal like the last time.
Short-term support is found at $1,215 and at $1,180. The $1,180 support is the most important one. Resistance is the recent high at $1,240 and then the red long-term trend line we show in the chart above. As long as Gold is below that red trend line I expect to see a trend reversal and new lows towards $1,050. Breaking above resistance could signal a big upward move towards $1,500 or even higher.
As always, thank you for taking the time to read my new post.