Weekly analysis of Gold

Gold price ended the week at new all time highs at $1,974. Trend is clearly bullish as price is rising in a parabolic shape. It is not wise to go against this trend, but also I would be wise not to get overconfident. A pull back will come, but the long-term weekly break out is real.

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Red line - parabolic rise

Green line - expected path

Gold price is breaking every resistance level it tests and continues to make higher highs and higher lows. Our last bullish signal was given at $1,830 and both $1,925 and $1,964 targets have been achieved. Our next target is at $2,010. The RSI is at overbought levels. A pull back is justified but I would not expect to see a major top forming. The upside in Gold has lots of potential as price has just broken to new all time highs. Unless we see a violent reversal below $1,600, I expect this up trend to continue over the coming months.

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