Gold charts point to $1,000

By Frank Tang

NEW YORK (Reuters) - While gold has a shot at retesting $1,000 an ounce after last week's resurgence, will the latest rally have room to go further? Technical analysts say yes, but the rise may not be a one-way street.

Analysts said gold broke above a downward trend line, which was formed by connecting bullion's peak of $952.60 on April 17 and a high of $935.30 on May 22 -- the two recent tops after prices began to slide following a record $1,030.80 on March 17.

Bullion's current chart formation looks reminiscent of its price pattern in 2006, when it surged to a then 28-year high before falling, and that signaled gold has already reached a bottom for this year.

"Gold was just consolidating its prior move during its decline in the past few months. It's very normal on a technical basis for these markets to pause for a few months, consolidating their moves, and then break out all over again," said Adam Sarhan, founder of Florida-based TheSarhanAnalysis.com.

Sarhan said a technical buy signal was triggered at the $915 mark, when gold surged above the trendline in heavy volume on June 26.

Spot gold has gained as much as 8 percent since it hit an intraday low of $873.50 on June 25, but it is still 10 percent below its March record.

On Thursday, bullion traded lower at $934 an ounce, while U.S. gold futures for August delivery were at $936.

Still, Sarhan said gold had found support at prices above its 200-day moving average in the past few months, and it is now trading sharply above its 50-day moving average.