Gold – Awaits breakout from falling channel likely

8 Jul 2016

• Dollar’s failure to latch on to post NFP gains led to a sharp recovery in gold from intraday low of $1334.90 to $1370.
  

• Gold’s sharp recovery from $1334.90 if followed by a bullish break from hourly falling channel (on hourly closing basis) would suggest the minor corrective rally has ended and could yield a test of $1380 (38.2% of 2011 high-2015 low) in the coming week.
  

• On the lower side, it would take a day end closing below $1329 to signal end of the rising trend.