The GOLD market has moved north since second half of December last year. These increases are significantly less dynamic than previous falls, initiated by results of last year’s presidential elections in the United States and are moving within a growth channel.
Although, as a result of the last growth impulse, at the beginning of June this year market for the first time in history has overcome declining trend line lasting from September 2011, the subsequent upswing reached only vicinity of April high where after bearish reaction GOLD formed on chart a formation of double peak.
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Since then, we have seen declines as a result of which, yesterday market reached the lower limit of the channel. There was also first demand response. Considering that no deep bullish correction occurred during the last downward impulse, we could expect such in close future.
If lasting from early morning upward trend continues, we soon expect to re-test level 1250.00 converging with 50% of the Fibonacci correction. Rejection of this level could be a signal for declines.
However, if this zone is defeated, we could expect much bigger increases.
