Gold Is Approaching A Support Zone

During the last three weeks Gold formed a significant pullback from the local high at 1357.45, which it had reached for the last year and one could almost believe it would reach 1375.11 which is the high from July 2016. The precious metal, however, failed to break out above the resistance at 1357.50 and literally dropped with 870 pts.

There is a chance for Gold to meet a strong support in the zone around 1270 – 1265 and to rebound from it, renewing  the upward trend.

In the alternate scenario it would break out below the above-mentioned support zone and I think that if that happens we could expect a drop almost to 1102.

I, personally, am more inclined to expect a renewal of the move north but let’s see what scenario the market will pick.