I was very precisely in previous analysis entitled “declines will continue to 1310$, there rebound should occur” and as we can verify it now my analysis was 100% effective. Gold tested 1310$ where support coincides with 50% Fibonacci retracement. Rebound occurred after that test and currently we are observing upward movement toward 1390$.
The nearest resistance is located at 1375$. After its breakout the price should test 1390$. However, at last mentioned level gold may spend a little more time. As we can see at time-frame weekly that level caused rebounds many times in 2010, 2013 and 2014. Due to this, the same scenario may be this time. Despite of possible pause in upward movement there is an uptrend on gold and potential correction shouldn’t break support at 1310$.
