Gold has found strong demand around the former low of 1,725 and jumped above the downtrend line. Passing above the downtrend line signaled that the price of gold could turn to the upside.
Technically, when the price breaks above a downtrend line, it signals that the downside movement is over and that the price could develop an upside reversal.
Gold trading conclusion
The price of gold could extend its growth after jumping above the downtrend line. XAU/USD jumped above the 1,764.66 immediate high announcing strong buyers. It could resume its growth as long as it stays above 1,751.52 today's low.
The material has been provided by InstaForex Company - www.instaforex.com