Gold has had a spectacular year so far in 2016, and it may just be the beginning. The rise of nearly 30% since early January seems provides a strong case for an end to the downtrend starting in 2011.
Now, the big question is whether the downtrend is actually over. Looking at the chart below, there is only one final level of major resistance left holding gold back. That line has already been tested twice since early July.
The fundamentals are in gold`s favor, in terms of huge amount of money printing around the world, as well as the gap in supply versus demand for physical metals, also suggests higher prices.
We may have to wait some more days/weeks or months to see it break, although once this last line of defense breaks for the bears, gold have huge upwards potential, which will also benefit stocks in the mining sector greatly.