Fueled by uncertainty over intervention in Syria, which could spill over into a regional conflict, gold is making a strong bear rally. Having broken resistance at $1350, spot gold is headed for a test of the descending trendline at $1500 on the monthly chart. The primary trend remains downward and respect of resistance at $1500 would indicate another test of primary support at $1200. Breach of resistance is unlikely, but would suggest that a bottom is forming. Either way, we are likely to see another correction to test support.
* Target calculation: 1350 + ( 1350 – 1200 ) = 1500
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