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Gold's long term bullishness is intact

The chart pattern which looked like a channel breakout in our last analysis still stands, however the momentum has dropped off the cliff and it is prudent to expect some form of retest of the breakout before further uptrend occurs. The prices are likely to drop perhaps for a short period to the range above 850, and hopefully will hold above the trendline (drawn in blue).



The series of resistances that exist at the levels of 900 will hold the prices and momentum down till renewed energy is gained from this rest. The prices are likely to touch 980 - 1000 levels once this retracement is completed.

The longer term bullishness seen in Weekly chart is unchanged.
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