FX.co ★ Gold technical analysis for December 10, 2015

Despite the EUR/USD rally, gold price has remained close to its recent yearly lows. Bulls were not able to break above $1,090 yesterday and this implies that the correction is not over yet. In overall, I expect gold to move towards the area of $1,120-40 over coming weeks.

Blue lines - broken wedge pattern

Green lines - price projection

Gold price is trading above the Ichimoku cloud. The price has broken the downward sloping wedge and this was a bullish signal. The upside move in gold price is weaker than initially expected. We could test $1,060 again where cloud support is found, but I believe the upside move towards $1,120-40 is still in play.

The weekly chart continues to give the same bullish signals as stochastics are oversold turning upwards, while prices are near very important support. I expect gold price to move higher towards at least $1,120 over coming weeks.