Gold has been moving in the bearish regression channel for more than a two months. The last time the metal reached high at $1375 at the beginning of July. The price has been descending since then and currently it has approached support at $1300. It has to be noted that key support at $1300 isn’t broken and the price is also above the uptrend line. This entire movement took a shape of the flag pattern. The flag pattern should be broken according to the previous trend in the theory. In this situation it will be up.
Right now, we are waiting for the breakout. If gold moves below $1300, it will be very negative signal and probably the price will fall up to $1200. However, the main scenario is rebound from $1300 and new upward impuls.
