A few days back I had given my understanding of Gold futures here.

On looking back, I realize that I was hasty in drawing conclusion that a seeming support at  trend channel’s lower line will lead to bounce back to 1000 levels.  One of the major reason against it was the continuous decline for 7 days before the bounce day finally happened.  Needless to say, I stand corrected and wiser.

Below is the chart as of Fri.  The picture has become interesting now:

1. It breached the trend channel’s lower line for 2 days but then bounced back.   However, 945 is the recent high and still resistance to be crossed.

2. There is an H&S pattern developing which is a reversal sign if it breaks neckline of about 893-897.  883-887 were previous high which may provide support of some kind even if neckline breaks.

At best it should be treated as sideways and may spend time consolidating, but if 945 is scaled eventually then bullish scenario will be back again.