Forecast - 2012.12.18

Gold had dropped down on Dec 13th significantly. I didn't know what the reasons were because USD did not go up. Other pairs also didn't drop like XAU.

It seems that the purple support is more confirmed as the new main trend support because it seems that market respects that purple line and gold bounced back exactly at that line.
After forming a hammer in H4 Chart, gold continue to strengthen until this moment.
If gold can break up the purple resistance and continue to play in the upper side of the purple line, I think there will be a bigger chance for gold to be bullish for closing its price this year.
But if gold goes back downside and enter the previous path (between the purple lines) than there more likely gold will be closed under 1700 for this year.

Trade well

GG - 2012.12.18