Gold: beginning of Multi year Rally or bearish rally ?

Gold: beginning of Multi year Rally or bearish rally? Gold bounced very fast from December, 2015 lows near $1042. Lots of news have started floating in market on Gold bottom out and starting of multi year rally. Here we need to understand why the prices bounced very fast from this level and is the prices made break out for multi year rally. Well, in 2008, Gold prices after crossing multi year high of $ 850 (highs of 1980) reserved near from $ 1040 in March, 2008. In 2010, $ 1040 level acted as perfect support for best ever rally in prices till $1900.

So, last year when prices, touched $1040 level, a reaction was natural and accordingly prices bounced 25 % from the levels.

Presently, $ 1280 levels is 3X1 angles from the lows of 1976. Historically prices were in bull phase when stayed above it. This time, this level has acted as perfect resistance.

Prices need to close above $ 1280 on weekly chart to confirm the breakout in prices.

Prices on weekly line chart