In my last review (World Equity Market: Gold market review) I told that if Gold (Comex) breaks $1800 in the upside then it will be out of the lower highs and lower lows pattern but since then it is unable to break that in the upside.
Last time I was talking that Gold is in early stage of a bullish pattern, now looks like that it is in final stage of building that bullish pattern. In more details $1545.5 is the level in the downside, if Gold (Comex) stays above that level, then there is a chance that it is going to make the bullish pattern. In the upside around $1800 is the trigger point for Gold (Comex), if it break that level then it may test up to around $2000. During last 30-40 days lot of volumes are seen in Gold market, which is also good for it. Right now technical indicators also support this upward move, so first thing that is necessary for Gold is to break $1680-$1700 level.
On other side from the middle of the march to April end this year Gold (Comex) was unable to break $1700 range, in fact it is moving around $1620-$1680 range, which suggest that it is getting a strong resistance below $1700 level. So from here if it follows the lower highs and lower lows pattern or a downward channel then, it can drop more than $1545, may be below $1500. I am still holding my view which I said in my yearly review (Gold market review for year 2011 and Gold forecast for year 2012.), that $1350 is a vital support for Gold for long-term purpose.
Coming future is very important for Gold market; I think macro events may decide the ultimate direction. Person who takes short position needs to cover that if Gold (Comex) breaks $1800 ($1750 for aggressive investors) in the upside.
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