The Gold bull rally has finally ended after 12 years, says Wang Tao, Technical Analyst for Reuters.
Gold prices had peaked to $1920 in September and had fallen to $1530 in a huge sell-off.
This crash could have violated the long term prospects of gold and signaled a bearish reversal.
The level of $1545 was very important in the sense that it was a 161.8% Fibonacci projection of Wave C of the bull cycle. Gold had a monthly closing above $1545 in July, after which prices shot up to $1920 in September and subsequently crashed to $1530.
Wang Tao expects gold to retrace to $1447, rebound to $1700-$1800 and then start a long term downtrend.