Gold might produce a potential rally towards $1314 levels

Gold prices have been drifting sideways since last several trading sessions, potentially in a triangle structure. It is seen to be trading at $1289/90 levels, possibly terminating into the final leg of the triangle consolidation at a lower degree. Triangle consolidations normally precedes the final thrust movement on either side and if the above structure remains intact, we could see prices producing a thrust rally towards $1314 levels before giving in to bears again. Please also note that the current consolidation has potential to drop towards $1260 levels as well and still it would hold the structure as intact. We have maintained a bearish bias since highs at $1300 levels and shall continue to do so for now. Selling on rallies could remain a simple trading strategy going forward.


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