The long term daily chart above highlights two potential falling (slightly) resistance lines from the peaks of the last six years. These lines are represented in black and red. Of particular note is how gold has reacted to these lines in the last few weeks – honoring both to the tick. This trading action is more evident on the 4 hr chart (below).
The trading community is watching alertly for a break of this $1362 level, and especially the $1395-$1400 level, which is the 38.1% Fibonacci retracement from the 2011 peak to the 2015 low. If gold breaks above each of these levels there is blue sky above for a move to at least $1480.
