Gold price made a double bottom at the area of $1,046, and as I have been saying for several weeks as gold is trading between $1,080-$1,040, the downside is limited and traders should only be looking for an opportunity to trade on the expected bounce that can push the price towards $1,120-30.

Red line - downward sloping resistance trend line

Gold price has made a double bottom at $1,045 area and is now testing the resistance trend line at $1,080 once again. A daily close above it will open the way towards the 38% Fibonacci retracement, which is our first target.

With the price moving inside the downward sloping wedge, Gold price is expected to bounce at least towards the kijun- and tenkan-sen indicators or even the upper wedge boundary where we also can find the Ichimoku cloud. Stochastic is oversold and that is why I continue to believe the upside potential of gold. I am not lookimg for an opportunity to trade the downside.