The gold price did not move around a lot over the last few weeks. This was probably related to the uncertainties with regards to the gold market. The sales figures for gold in China were a bit disappointing and also in India there were difficulties. The country had raised import duties on gold, but it seems that this is not going to be a problem going forward.
At the start of the year gold managed to surprise friend and foe with a strong price jump over the first months. That came to an end, unfortunately, and ever since then we have been moving sideways. Considering the serious drop in the gold price last year, a continued recovery would not be so hard to imagine.
But not only the fundamentals of gold are looking good. There are also a few positive elements to spot on the chart of the gold price. It is evident that we have made a double bottom in gold, which could give investors the necessary confidence in the precious metal once again.
The Gold Price Is Bottoming Out
The chart above indeed clearly shows a double bottom. With the reorganization of the sector last year, the insatiable hunger for physical gold of Asia, and the technical strengths, the price of gold should be going up. The first target would be the resistance level of $1,400 and in the long term the gold price has only one way to go, regardless. With yesterday’s news, however, gold might be testing its ultimate support level for a third time before it decides to do the right thing.
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