GOLD at the beginning of the current week again reached the key support – bottom of range area within $ 1304. There, as can be seen on the daily chart below, again occured demand and a slight rebound was seen.
The bulls, however, did not have enough strength to push the quotes to higher levels and already during today’s session the course again tests the area of support at 1304.00.
The result of this test may be of considerable importance. If the price manage to effectively break the key support area, the way to the zone at 1276.00 will be opened, where there is a bullish gap from 26 December last year. Below, support is visible at 1265.00.
Alternatively, if buyers are again interested, the rate may continue to move within the range of which the upper limit falls close to 1361.60. It seems, however, that this scenario is slightly less likely.