Friday saw gold sell off steadily, with the selling intensifying as the market dropped below Thursday's low at 1369, resulting in gold closing near the weekly lows at 1354.
The market has continued to sell off overnight during Asian trading hours, though has found support at 1338 (the 18 April low) and bounced from this area to currently trade at 1355.
The market appears set for further declines after a brief recovery bounce and we expect a retest of 1322 this week. A break of this level brings 1300 into play - below this 1280, 1250 and 1230 are the next support levels.
First resistance is at 1365, above this 1370, 1385 and 1400-1404 are the next resistance levels.
The dollar has broken out above resistance at 84 - we commented last week that this was a potentially important breakout with bearish implications for gold. Oil continues to trade erratically, though with a downward bias, which is also bearish for gold.
Equities continue their powerful breakout rally and, although a correction at some point is inevitable, the bull market is alive and well in equities and is not yet showing any signs of fatigue.
Today's video for subscribers looks at last week price action in more detail and some longer term Fibonacci retracement targets for this decline.
The market has continued to sell off overnight during Asian trading hours, though has found support at 1338 (the 18 April low) and bounced from this area to currently trade at 1355.
The market appears set for further declines after a brief recovery bounce and we expect a retest of 1322 this week. A break of this level brings 1300 into play - below this 1280, 1250 and 1230 are the next support levels.
First resistance is at 1365, above this 1370, 1385 and 1400-1404 are the next resistance levels.
The dollar has broken out above resistance at 84 - we commented last week that this was a potentially important breakout with bearish implications for gold. Oil continues to trade erratically, though with a downward bias, which is also bearish for gold.
Equities continue their powerful breakout rally and, although a correction at some point is inevitable, the bull market is alive and well in equities and is not yet showing any signs of fatigue.
Today's video for subscribers looks at last week price action in more detail and some longer term Fibonacci retracement targets for this decline.