Gold price has shown several bullish signs over the past few sessions as we explained in our previous posts. Breaking above and out of the bearish short-term channel was the first step to start a new upward move that is expected to push price towards 2019 highs and why not higher.

In the weekly chart above we have shown before the bullish flag formations in Gold prices. We now have another bullish flag breakout and this is another bullish signal. There is no weekly bearish divergence in the RSI and this supports the bullish scenario for new highs. Price has broken out of the bearish channel and bulls have recaptured the critical resistance zone of $1,490-$1,500.

Red line - resistance

Green line - support

According to the Ichimoku cloud indicator, Daily trend had turned to neutral when price entered the Kumo and broke above the red trend line resistance. As we said many times before, bulls will keep their hopes alive as long as price respects the green support trend line. Price not only respected support, but also broke above the Kumo. This is an additional bullish signal. We could see a back test of the cloud at $1,491 but price should then bounce strongly back up again. Bulls do not want to see price enter the Kumo and break below it. This would be a very bearish sign.