World Gold Index from November 2010
Seems like a glass ceiling near the $1440 level with Gold. If you look at a weekly chart over the last 9 years, you will notice a few occasions where it traded in a range for 6 months to up to a year. If there is no catalyst, Gold may be in a trading range through the summer until August/September where the seasonals start to kick in.
The RSI is in a downwards trend which suggests that a pullback may be in the near future...? If the US Dollar Index continues to remain weak, it may prop Gold up over the $1440 resistance level and onto $1500.
Gold is averaging around 17.4% over the last 10 years and it started 2011 at $1388. Add 17% and we have a potential ending price around the $1623 level, a $235 gain.
