GOLD market since second half of December moved north. These increases are significantly less dynamic than previous falls triggered by results of last year’s presidential elections in the United States and move within growth channel.
Due to recent growth impulse, at the beginning of June this year market for the first time in history has beaten line of declines lasting since September 2011, the subsequent upswing reached only the high from April, where after bearish reaction formed a formation of double top.
Since then, we have seen declines as a result of which last Tuesday market reached lower limit of the channel, where demand response occurred. Later growths were not so dynamic and did not last for long.
Looking at H1 chart, we notice that despite these increases market returned to the growth channel (above the green line that was its lower limit), and as a result of today’s falls we broke the bottom again. We are now in local (blue) support area, whose persistent overcoming could open the way to further declines, and given the sustained breakout from the growth channel, this trend could continue at a much broader time horizon.
