The gold price is inching towards $1830 for the fifth time since July. Gold is also nearing the top of the wedge that it's been trapped inside since August of last year.
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| Weekly gold chart |
This constitutes strong resistance to the upside. If it's broken, we can expect a rapid move up to $1900, followed by a more gradual move towards $2100. Our year end target of $2100 will remain within reach.
However, the resistance may be too strong. If so, we may have to wait until December for a retest. But there's little need for concern. There's a strong line of resistance to the downside at $1680. The gold price is unlikely to go lower than that. Last time it touched that line, the upwards reaction was strong and rapid. That's likely to happen again if there's a renewed attempt to break out to the downside of the wedge.
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