Gold price has been into a consolidation since June 2013 till October 2014 when the price has broke down the major support from 1180, 17. At that moment everyone was expected to see the price at new lows, maybe under $1000 / ounce but the price didn’t stay long below the broken support, the price has returned above 1180, has tested this support and then has increased and reached the again the $1300 level. The Gold price is into a corrective phase on long term (Monthly chart) after a long uptrend that lasted 10 years, the ascending trend was started in 2001 and has reached a historically maximum in 2011.
Gold has grown aggressive from 2008 when the price was even $681, afterwards has started the financial crisis and the price has reached a historic high at 1921. 05, everyone has invested in gold because the precious metal is seen as a safe haven.
As you can see from the Weekly chart, the price is trading below the 32.8% retracement level, has tried to break this Fibonacci level in January 2015 but the price didn’t manage to stay above $1300 level. The price has failed to remain higher and has begun a bearish movement that has lasted till last week when the price has reached a support zone at 1142, 77. We have a medium term support between 1142.77 – 1131.78 levels. I’m not sure that this support will hold if the US dollar will continue to grow on long term.