Gold Medium Term Technical Chart

Gold Medium Term

Moving Averages 1156-1176 (Bullish)

The medium term remains bullish in gold with support at the moving averages and the dual yellow downtrend line in the 1150-1172 area. As long as price remains above that area the medium term remains bullish. Yearly resistance is the 1303-1322 area and that is the price points gold must overcome in order for the current rally to resume. That is the KEY PRICE POINT TO KEEP FOCUSED ON in order to favor the medium term price will keep rising. A weekly close below 1205 will favor price returns to test the dual yellow downtrend lines. A weekly close above 1322 will favor gold is heading towards 1400. Until then we remain in a trading range of 1200-1300 dollar gold.

Another important aspect is the dotted line where the Fibonacci 38% resistance resides (Appx 1272). As you can see on the chart, this area has proved to be resistance to the current gold rally. Once gold clears that area, it will once again give potential for medium term gold to rally all the way up to the yellow downtrend line which is situated near the 1370 area.