Where is Gold heading to?

It was only a few days back that Gold prices showed some signs of strenght moving towards 1600 levels but not before falling again. Gold prices at the time of writing is hovering near the 1585 levels. With all the hulabalo about Gold prices strengthening as various Central banks across the globe embark on monetary easing, one can only wonder what happened to Gold.

So let's take a look at Gold and see what's happening.

Gold Price Analysis

In the daily charts below, we see a converging triangle being formed. A breakout below 1570 is likely to see Gold prices drop to the region of 1538 levels.

As mentioned in the trading methodology, we enter our trades based on the triangles signal qualification. Meaning that ideally Gold should reach the 1538 level in order for us to take our position. As such, you could set up a price alert for Gold to reach this region in order to go long.

The most ideal scenario is that we could expect to see Gold prices reverse around these levels (1538 - 1537) and finally the Gold bulls can enjoy some bull run. The estimated price projection is about 1642 - 1643 region.

However, at this point the above analysis is purely speculation and also the timing is a bit too early. We'll wait out for a few days for prices to hit the bottom in order to build up a more concrete trading plan for Gold.