Two main pattens emerging in gold which will decide the further direction of gold.
one is the big head and shoulders shown in bottom left of the chart with a target of 1255 which has been achieved and now will act as a big resistance.
There is also this probable cup n handle pattern in formation with a target of over 1350$/oz.
Important levels to watch on gold are
1> 1250-55$/oz above this gold will get a fresh momentum and can trigger lots of short covering.
2>1160-1140 $/oz important support as far as the cup n handle is concerned a fall below which will can lead to a failure of the pattern and lead traders in to profit booking in their long positions.
Most likely according to me these levels will get breached along with whats happening in Dow .
If Dow rises and shows fresh rally gold can slide below 1160.on the other hand if Dow falls below 9850 gold will most likely head towards fresh high and break 1250$/oz.
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