Gold's close above $1,664 support offers the first evidence for a return to an uptrend.

By Carole Vaporean
NEW YORK, March 6 (Reuters) - Despite gold's more than 2 percent decline on Tuesday and near 7 percent drop in a week, selling stopped at a key technical support level, suggesting that gold will renew its uptrend in the near to medium term.
On Tuesday, bullion prices finished at $1,673.70 an ounce <XAU=>, after sliding to $1,663.95, which was last reached on Jan. 25.
That level also stopped within $2 of the left shoulder low on a reverse head and shoulders pattern forming on spot gold's daily chart. A head and shoulders bottom forms after a downtrend and, if confirmed, points to a potentially bullish move.
In this case, bullion has fallen from the $1,920.30 per ounce all-time peak set on Sept. 6 to the Dec. 29 bottom of $1,521.94 per ounce, its lowest since July 6.
Gold's close above $1,664 support offers the first evidence for a return to an uptrend. If the bullish pattern is confirmed, then gold's upturn may eventually lead to $2,056 or beyond.