If Gold Price Breaks This Trend, Watch Your Position

New Yorl (July 1)  Gold prices have been trading in a tightening wedge pattern (between rising trendline and horizontal resistance – see point 1) for several months – and has been bouncing back and forth in a narrowing range.

The latest test of horizontal resistance failed yet again, leading to a reversal that is trying to breakdown below the rising trend line (A).

This trend line represents a 16-year uptrend, so it has important implications for gold.

If you are a gold bull, you are hoping for a strong recovery…and soon. The more time price spends below this trend line, the more concerning it is.

A breakdown here would send a rather bearish message to metals investors, so stay tuned.

Investing.com