The first chart is a quarterly chart of Gold. As we can observe Gold took support at 38.2% retracement level i.e. 1211 USD and had bounced from there. Since gold has corrected severely from 1800 levels to 1200 without any meaningful retracements I expect that it will hold 1200 for a while.
If we look at the weekly chart of Gold we can
see that gold has channel resistance at 1320 level.
If gold breaks above 1320 than we can expect
retracement upto 1341, 1428 USD per ounce.
Since the price damage in Gold has been severe I don’t expect Gold to
break into uptrend anytime sooner. Gold should start correcting again form
higher levels and I expect it to go to 1000 USD. I will reiterate that I am not a long term
bear on gold unless it breaks 1000 USD per ounce.
Similarly we can also expect a pull back in Silver prices.
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