Where is gold heading ?

from the technical point and figure analysis view i see significantly higher gold prices in the nearer future. As we can see clearly gold has resumed his former up trend after testing new lows at 680 USD which was exactly the breakout point of a quadruple top back in september 2007. After that gold went almost straight to 1030 USD which is now the new resistance level for the gold price. Due to the high market volatility in the recent months, i have altered the box size from 3 X 2,5 USD to 3 X 5 USD to show a clearer picture of the battle. Recently in the high/low chart we saw a double bottom sell signal at 970 USD which i have marked with a thick short red line. The thin blue line on the bottom shows us that the bullish support is still intact. In January 2009 it was breached but almost immediately it went up again and we had no sell signal at this time. The 5 and 8 columns moving averages are still showing bullish signs, so i see the situation as a deep breathing of the market before the next big move. I would like to see a single or triple top buy signal at 1010 USD to confirm the market direction to new alltime highs in gold. After that is should make new highs beyond 1035 USD. The close chart confirms no signs of of weakness in the upwards price thrust, at this time we can considerate it a slight pullback to the breakout point at 930 USD. It is a high pole so we have to wait and see what the market makes in the next days and weeks. Fundamentally the global economic debt situation in my opinion sustains much higher gold prices. Gold was and is simply a inflation hedge and when all confidence is gone one of the few opitons to find a safe harbor. Different vertical counts of the price targets show clusters which makes it more likely to be met in the future.

Gold P&F Chart with 5 USD Boxsize High/Low

Gold P&F Chart with 5 USD Boxsize High/Low

Gold P&F Chart with 5 USD Boxsize Daily Close

Gold P&F Chart with 5 USD Boxsize Daily Close