Gold price has made 5 waves up from recent lows of $1,052 to just below $1,075. A three wave pullback is expected and then another leg upwards towards at least $1,090. Gold might be in the process of a long-term bottom formation, so bears should be very cautious. A new lower low towards $1,020-40 cannot be forgotten yet.

As can be seen in the 4-hour chart above, I have labeled the 5 wave advance in gold price. This is the first bullish signal regarding the possibility of long-term reversal. We expected a bounce from current levels as the price was heavily oversold even in the weekly level as can be seen below. A short-term trend has changed to bullish. Medium-term trend will change to bullish if the price breaks above $1,100.

The weekly chart shows how the stochastics are oversold now and that there is a sign that reversal to the upside is possible. The first weekly target is the tenkan-sen and kijun-sen indicators in the area of $1,115-25. I would remain bullish on gold as this could also be an opportunity of long-term reversal.