Gold price tested the lower boundary of its uptrend channel last week and is now sitting right at the support level of the uptrend channel.
Gold price is a beneficiary of the weak US dollar and is a good hedge against inflation. In part, the down move last week was caused by regulatory bodies that required higher margins for commodities trades in order to curb speculation.
There are a few important levels to watch out for. The first is the immediate support level at 1477. If this support fails, the next level is at 1446 and 1424 respectively. The price action is now slightly on the bearish side as shown by the Fibonacci levels. I will expect the price of Gold to at least test the 1477 level and a very high probability of it reaching 1462 in the near term. This will mean a complete reversal of the rebound that took place from 1462 to 1526 level.
