Gold price continues to trade higher above an important high of $1,190 reached in October. The price however remains inside the long-term downward sloping wedge. The long-term bearish trend is now being seriously challenged.
Yellow line- multi year resistance
Gold price is testing the weekly Ichimoku cloud resistance levels and the upper boundary of the downward sloping wedge that is in force for the last two years. The price has bounced off $1,050 area as we expected exceeding our most optimistic expectations for a bounce. Gold has every chance to reach a long-term low and reverse at $1,050.