The red downward trend seems to have ended. As seen on the chart a new channel with the solid green line has formed. The true value of gold right now is at about 1150-1200 in my opinion (if we trust inflation indicators). After the bear market following the last boom of gold we are finally seeing some higher lows. The forming channel is going towards the sacred 1240 resistance level which I think will be broken twice as shown on the chart. Macro factors will play a huge role in the rollout of this scenario. In case we break below 1190 there is a slight possibility of a freefall and a continuation of the bear market, however dramatic fall of the gold price would lead to serious disruption in the mining industry which is highly unlikely.