Gold closes the week near the 1375 decisive level

Gold closes the week near the 1375 decisive level

Although the Gold has been trading in a strong downtrend since early in 2013, the formation of higher bottom on the monthly timeframe outlined at 1122 has placed the downtrend under threat. Furthermore, trend indicators are improving and started pointing to a stronger Bullish side. Gold broke above its downward trend line and the MACD switched to positive territories. Now with prices approaching the previous monthly top at 1375, a sustained rise above that level will signal a monthly reversal and initiate a further rally targeting the 1530 level. And in extension a retest of the Jan-2010 top of 1793.