Gold price made a pull back today towards $1,320-18 area as we expected from our last analysis yesterday. Price then turned back upwards towards its recent highs. Trend remains bullish. A pause to the sharp rise is expected in order for the market to digest the sharp move.
Red lines - expected path
Gold price is trading above $1,320 again near $1,325. Gold price has made a remarkable sharp move upwards nearly vertical. Such moves usually have a follow through to new higher highs but only after a small pause and maybe a shallow correction. There are very few chances that Gold makes a major top at current levels. This would be the case only if price were to break back below $1,300 again. Gold price should continue higher towards the longer-term resistance level of $1,340-50.
