Gold’s Long Term Chart Looks Increasingly Bullish

The most interesting trend on the longer term gold chart is the deceleration of gold’s decline. Although the trend remains down, with a clear formation of lower lows, the decline is slowing. Also note that the lows have occurred in an orderly manner, not comparable to the aggressive declines of April and June of 2013. This indicates selling pressure is fading and that gold is bottoming.

gold_2010_2015

Note on gold’s chart that the wedge is now ripe to change its trend. The quality of the wedge is high, with at least 3 tests at each side of the pattern. We wouldn’t be surprised at all if gold would start a secular breakout later this year.

From a chart perspective, we should add that a falling wedge is a bullish chart pattern.

The key price level to watch for a long term breakout in gold: $1,350 /oz.

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