Gold, as expected by our analysis, has started a small trend reversal with an upward direction. Prices have been supported at 1,300-1,320 and are now making a try to challenge the highs. Prices are forming a pattern with higher highs and higher lows. This confirms the short-term trend change to upward. We expected this bounce to come from this price area as the support at 1,300-1,310 was very important. Currently, trading near 1,337, Gold is possible to continue much higher as long as the support at 1,315-22 holds.

The downward move from 1,375 to 1,305 has a Fibonacci retracement of 61,8% and 50% at 1,347 and 1,341. These two levels are important resistance levels, and if they are broken upwards, the chances to break above 1,375 towards 1,400 will rise. The initial 5 waves up from 1,291 to 1,375 made us expect a short-term bottom near 1,320-1,310 and that is exactly what happened. Our wave analysis anticipates now another leg up similar to the first one from 1,291 to 1,375.

The daily chart shows clearly that 1,300 is important support and the next leg up could target once again the broken blue trendline as it did in the first upward move at 1,375. Now the target is near 1,390-1,400 and rising. However, we must focus on the price structure from 1,305 and when we see 5 waves up completed, we should exit whether the target was hit or not. Breaking below 1,300-1,290 will push the precious metal towards 1,250-1,200. Concluding we remain long as long as prices trade above the short-term support at 1,320 and the longer-term support at 1,300. Target is at 1,370-1,400.