Looking at GOLD charts we notice that price has moved north almost continuously for three weeks. In result of this growth market last Wednesday beat a significant resistance at $1257 level and re-tested it from the other side (as support). For such dynamic growth and breakdown of this resistance was responsible FOMC’s decision last week to keep rates unchanged at current level, resulting in a strong depreciation of the US dollar.
Looking at H1 chart, we notice that market is moving quietly south from the beginning of today’s session. Weak dynamics of these decreases speaks of the fact that this is only a correction after which we would expect another growth impulse. It is noteworthy that the nearest support coincides very precisely with 38.2% Fibonacci correction from the last growth impulse. Re-testing and rejection of this level could be a signal for return to growth.