The gold price has finally stabilized today after suffering 3 days of heavy losses and we may be in the process of a double bottom formation. It seems as if the news out of Spain that Catalonia intends to press ahead with independence has been a major contributor to this factor

As we mentioned in the previous 2 articles we don’t expect gold to break upwards in the next few trading sessions and is expected to remain range bound between the top 2 lines as it did in August.

There could be a pull back to the lower trend line which is supporting the previous 2 bottoms and may present a good entry opportunity and the predicted bullish double bottom will still be intact.