If you follow my analysis you know that I'm very much bullish in Gold given the fact that in the past months we've seen a surge in this metal's price from investors looking for a safe haven from the equities market and the US Dollar (fear of recession and trade tensions escalating)
Year to date Gold is up 24.69% (the SP500 is up 3.21% YTD) and buyers keep relentlessly jumping in at every key level. Today Gold retraced back from the highs at around $1560 to a previous base where we've seen bulls standing thick. The 1485/1495 is a level where, in July 2011, we saw big buyers move price to all time highs around the 1925 level. That's a 24.85% move in around 2 months!
The political environment hasn't changed and the fears of recession in the US keep climbing and Gold is right at that important historic support level.
Technically speaking this is the base we've seen tested since August with sellers unable to break bellow. and now we have hit some bearish targets at this exact level, the 161.8% retracement of the last move up.
Should buyers give up and seller able to break below I could see a dip and test of the 1430 level before we see any buyers jump in. Should bulls push price up and break with this falling wedge a test of at least the 1530 level would be in play, with the real bullish targets at the 1570 level.
Trade safe and good luck!
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