Above is the daily chart of Gold (XAU). With the unstable world economies and currencies, investors were moving their funds to this safe haven, leading the price to reach above 1,500.
Last time I suggested that 1,500 would be a resistance for gold; however, it seems like there is no selling power at this point at all.
Instead, the price just broke out the short-term up-trend line (in red). This implies a further crazy surge for gold.
Purple and green lines are the other uptrend lines which would provide support to XAU, but they look relatively useless after the break out of red line.
By fibonacci retracement, 1,522 could possibly be the next resistance. Then the red line will be its support.
And I could not see any good reason for gold to fall back below the red line. So I am having a bullish view on it.
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