Gold found strong footing near 1,450 and the upper surface of the Ichimoku cloud on the weekly chart and reversed north again, retaining its bullish structure in the long-term picture.
Currently, the price is eating a portion of the bold gains it earned last week and the RSI and the MACD are providing little hope of another rocky rally in the short-term as the indicators are lacking positive momentum.
Still, the market seems to be well supported by the ascending trendline that joins the lows from May 2019 and therefore only a decisive close below it would trigger negative trading thoughts. To reach that floor and re-challenge the 1,450 territory, the price should first breach the 23.6% Fibonacci of the upleg from 1,046 to 1,703 at 1,548, while below the trendline the bears are eagerly waiting to take full control and drive towards a tougher barrier around the 50% Fibonacci of 1,375. Clearing that obstacle too, all attention will turn to the 200-weekly simple moving average (SMA) and the 61.8% Fibonacci of 1,298.
Alternatively, if the bulls dominate above 1,600, the spotlight will shift back to the 1,703 top, a break of which could extend the uptrend towards the 1,745-1,800 resistance territory taken from the 2011-2012 highs. Above that, the door would open for the 2011 peak of 1,920.
In brief, gold is not expected to start a bearish phase unless the price closes significantly below the ascending trendline and the specifically beneath the 1,450 level.
