Gold Is Moving North, Albeit Slowly

Gold has been developing within a horizontal range channel between 1308 and 1349 for eleven weeks.

I think it is far more likely for there to be a breakout to the upside and in this case we can expect a rally to 1390 – 1391, a level that Gold has last reached in March 2014.

In my opinion, after reaching that resistance level Gold will fall back to test the breakout level. Depending on the way it develops there it will become clear whether we can expect a rally toward the resistance zone of the diagonal channel in blue.

Although the Gold trade has been rather slow during the past few months I think that it will reach and test that resistance zone in the long term.

To the downside the support is in the zone around 1310 – 1302 but I think there is less of a possibility for a test of that zone.