Technical indicators are suggesting that a major move in gold is coming. First, the weekly chart of gold futures (see Figure 1) shows that the gold price is near the bottom of a well-defined range of $1550-1800. Thus, a break below the major support level is likely to produce heavily selling – a major move to the downside. Likely, if the support level of $1550 holds, the next move is likely to be sharply to the upside, back to the resistance level of $1800.
The daily chart of gold futures (see Figure 2) shows the behavior of gold price near the key support level, which could give some insights about the direction of the next move. Gold sold off in February as the $1640 support level was broken, which led the price to drop to the major support level of $1560. Next,…>>MORE>>(Seeking Alpha)