Gold is living in a tight situation between the range of 1550 and 1700. At this moment Spot Gold is at a price of 1641. Please see the graph. The blue line represents the 30 wk MA which has been Gold support ever since 3 years ago. Each time, whenever it touches the MA, it continues its ascent. Recently it was broken a few weeks back. Will it becomes a resistance to the price of Gold? If it does, you may have seen the end of a 10year bull run in Gold.
However, having said that, there is also a strong trendline supporting the gold price now. See the red line. Recently Gold has rebounded off the low of 1500 which is also the trendline support. Will this figure hold?
I forecast that Gold will be hovering between 1550 and 1700 region. In the short term, I think it will travel towards 1700 before taking break.
Let us watch carefully whether 30wk MA or the 3 year trendline wins the day....
