Gold price gave us two bullish signals yesterday. The first one was when price broke above the short-term trend line resistance at $1,746 and the second one and most important one was when price broke above $1,758 major horizontal resistance.
Green lines – medium-term bearish channel
Red line- Fibonacci expansion targets
Gold price is trading above $1,770 and is approaching our first target area of $1,788-$1,800. Since Gold price double bottomed at $1,677 and recaptured $1,730, we have been talking about the possibility that price will make a bigger bounce towards the upper channel boundary. Gold price seems to be following this scenario. This scenario could unfold into a bigger move higher specially if price breaks above $1,800-$1,820 and does not fall below $1,730 again. New all time highs are a possibility that should not be ignored.