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Gold To Resume Downside Move Again?

Published 06/17/2014, 04:46 AM
GC
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Gold lower as per our last report and falling to $1240 area.However a bounce was very much needed from $1240 support zone and it is here.

Now gold is trading around $1267 mark and as we can see on charts, gold retested the upper tradeline of minor descending channel and placing a bearish candlestick pattern once again which suggest for the long term bearish move to continue in coming weeks. However there is minor possibility of retesting the the broken tradline around $1310. Meanwhile a failure to close above 61.8% feb correction and bearish candlestick pattern hinting for a downside move ahead.

On fundamental side, global tension still supporting the price but lack of fresh updated may vanish the effect.
XAU/USD
Based on above studies, we will prefer to sell gold for possible targets around $1240 and then $1213. Only a day close above $1310 will force us to reanalyze the charts.

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