Gold today has tested the upper channel resistance broken during yesterdays trading. With the USD looking likely to fall further and the GBP and EUR awaiting the results of the British Election it appears Gold is going to see a significant rally in the next few days.
The blue horizontal line represents an key area for gold, 1300. Special attention is warranted around this area due to its significance going all the way back to 2013. Price action around this level should give us a better understanding of its future path.
An entry around current price with stops below the small demand area at 1265 we should see a rally up to at least 1335 over the coming weeks. Whether gold holds these prices remains to be seen. With the stock markets around the world running out of steam and global currencies looking shaky gold may be once again the safest option.
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