The gold price has made a text-book extension as wave 3 or C of the 161.8% of wave 1 or A. Upside continuation of this bullish trend will increase chances that a long-term low is in at $1,050.
The gold price has reached the 1.618 extension of the first wave up. A wave 4 is under way according to the bullish scenario. For this scenario to hold, the price should not overlap wave 1. On the other hand, bulls want to see at least one more new higher high. The $1,090 level can be retested as wave 4 may be incomplete.
The weekly chart continues following the path we expected. We have seen a breakout above the weekly sideways consolidation below $1,090 and the first important weekly resistance at $1,110 is being tested. There is more upside potential even towards $1,150.
