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  • Gold prices back over the 1500 critical line, but bulls have more to prove.
  • A 50% mean reversion level on the cards on repeated upside failures.  

Spot Gold prices managed to get through the psychological $1500 level overnight with a solid bullish close. Downside attempts have been rejected, leaving an hourly bullish pin bar as the metal morphs into a bull flag. Bullish continuations will target the usual suspects higher up, namely the  1520 area that is guarding prospects for a test back to the key 1535 resistance target.

Firstly,  trendline resistance here needs to give at this juncture. Failures will open a run back to the downside where bears can target  a 50% mean reversion of the late July  swing lows to recent highs level around 1460/70.  Further beyond a 50% retracement will open prospects for the 61.8% at 1450 ahead of 1420 that guards 1385 as a full retracement.  

Weekly Gold chart