Gold Continues Developing Within The Trend Channel

Gold continues developing within the trend channel, but after it broke out below 1277 – 1275 it looks like it will head for the next support trend line (in blue) around 1260-1250.

I think that in case the precious metal does break out below that support too we could expect it to continue depreciating to 1172 or even lower – to 1113.

However, in my opinion, Gold is more bullish than bearish and the market aims for a rally, so I think that after the test of the support trend line Gold will resume its move to the upside and the targets in the medium term are the resistance trend line (in red) around 1360 – 1365 and the one at 1400 (in blue).