Gold price is challenging the $1,520-25 resistance area while price has held inside the medium-term bullish channel respecting the key support area of $1,500-$1,490. Gold could continue higher towards $1,550-60 if price breaks above $1,525 and stays above it.
Red lines - bullish channel
Yellow rectangle - resistance
Green rectangle -target if price breaks out of channel
Gold price is still trading inside the medium-term bullish channel. So medium-term trend remains bullish as long as we hold above $1,500-$1,485 but short-term trend has also changed to bullish again as price recaptures $1,520. Bulls need to continue to see higher highs and higher lows in order for this upward move to unfold into a bigger wave higher towards $1,560 and higher. Support remains key around $1,500 and bears need to break that level in order to gain control of the short-term trend at least. If price breaks out and below the bullish channel, I expect price to move towards the green rectangle area.
