Gold has shown a new down movement from january until today, but if we consider a wider picture, as shown in the chart below, we notice that it broke a strong descending channel that led the price down since a very long time. During this last downward tendency we noticed a decreasing volume that shows a lack of interest in selling gold at this price; this could mean that a brand new direction is just round the corner; this seems to be validated by the trendline of the upward channel where the prices bounced in the last week.
Another sign of a possible bottoming formation for Gold is the Ratio between the Us dollar and Gold itself. This instruments are generally inversely correlated and in their extreme points of distance they provide great clues of tendency changing. As for standard deviation extremes ( 3 sigma or -3 sigma) we observe the distance from the mean, in the Ratio charts we can spot the distance from the fair value Ratio in the short term and in the long term. Here below the 3 months chart with our Ratio forecast with the new possible buy zone.
Below the 3 years weekly chart that shows the Ratio Forecast line in its extreme point right here right now as the price is on a great long-term support. You can easily notice on the chart, extreme values on Ratio charts can help often, in confluence with other tools, to locate absolute tops and bottoms.
We 're waiting for the right bar to enter the market on the long side in the very next days.