GOLD D1 - testing local support

GOLD market since second half of December moves north. These increases are significantly less dynamic than previous declines which began in result of last year’s presidential elections in the United States and are trapped within bullish channel edges.

Although, as a result of the last growth impulse, at the beginning of June this year pair for the first time in history has beaten the line of bearish trend line drawn from September 2011, the subsequent upswing reached only high from April, where after bearish reaction graph formed a double top formation.

Since then, we see declines as a result of which the gold price has fallen again below downward trend line .

Currently market is testing local support around 1260.00, which could lead to further declines even in to the resistance of growth channel.