Gold rallied off support at $1200/ounce and is headed for a test of the declining trendline. Expect resistance between $1300 and the former primary support level of $1340. The primary trend is down and resistance is likely to hold. Respect of resistance would indicate another test of $1200 — and offer a target of $1100 if support fails.
* Target calculations: 1350 – ( 1500 – 1350 ) = 1200; 1200 – ( 1300 – 1200 ) = 1100