Monthly Chart
Let's take a look at what happen to Gold after hitting historical high.
Gold pulled back to immediate support level and broke the long-term uptrend line after hitting 1923.70 in year 2011. Then it tried to re-bounce but failed at point "A" and fell hard breaking the immediate support line toward 1200.
Surprisingly gold officially enter bear cycle after Federal Reserve announced a third round of quantitative easing (QE3) on September 2012.
Gold re-bounce strongly toward long-term downtrend line after found support near 1045. It tried multiple attempt to break the long-term downtrend line at point "B" but failed again and broke the short-term uptrend line fall to 1125.
Finally gold breakout on 6-June last 2 weeks. Although it is a false breakout but the triangle is narrowing and we should able to know either it is a breakout or breakdown next month.
Daily Chart
Although it is a false breakout, it shows that the long-term downtrend line has been weaken. While the several rate hike with strong dollar rally not able to press down gold price, any disappointing economy report or a delay in rate hike can push the gold price higher.
Gold ETF (GLD) is a good buy for long-term investment once it enter into a new bull cycle. Alternatively also can buy Silver ETF (SLV), because as gold rallies, silver will also follow.