Spot gold is testing the lower border of the consolidation between $920 and $940. Narrow consolidation is a continuation pattern and a close below $920 [orange] would test primary support at $870. A close above $940 (or intra-day rise above $950) is unlikely, but would signal that the correction has ended. In the longer term, failure of primary support would test the November 2008 low of $700; while breakout above $1000 would offer a long-term target of $1300 — calculated as 1000 + ( 1000 – 700 ).
