After closing near the weekly lows on Friday, resulting in a large red candle on the weekly chart, the selling in gold has continued this morning with the price falling below last week's low.
Overnight the low was 1225 - the price is currently 1231 with the bears gunning for major support at 1180 as their next target.
The dollar is stronger this morning, as are equities, whilst oil remains weak - it appears that the same trading pattern as last week is establishing itself again in what will be a holiday shortened week. With Thanksgiving on Thursday, traders are likely to take Friday off and we would expect little price movement as we approach the end of the week.
Gold is running out of support levels before we test 1180, with 1207-1210 the only meaningful support. The round number at 1200 may provide some support, however we suspect the bears have got the bit between their teeth and will force a test of 1180 as a minimum.
Support can be found at 1225, 1220, 1207-1210, 1200 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term.
Resistance can be found at 1238, 1250, 1260, 1270, 1277-1280 and 1291-1295. A break above 1295 would suggest an end to the downtrend, though it would take a break of 1360 to confirm this was the case.
Today's video for subscribers looks at last week's trading in detail and examines the longer term implications of the break below 1250.
Overnight the low was 1225 - the price is currently 1231 with the bears gunning for major support at 1180 as their next target.
The dollar is stronger this morning, as are equities, whilst oil remains weak - it appears that the same trading pattern as last week is establishing itself again in what will be a holiday shortened week. With Thanksgiving on Thursday, traders are likely to take Friday off and we would expect little price movement as we approach the end of the week.
Gold is running out of support levels before we test 1180, with 1207-1210 the only meaningful support. The round number at 1200 may provide some support, however we suspect the bears have got the bit between their teeth and will force a test of 1180 as a minimum.
Support can be found at 1225, 1220, 1207-1210, 1200 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 in the short term.
Resistance can be found at 1238, 1250, 1260, 1270, 1277-1280 and 1291-1295. A break above 1295 would suggest an end to the downtrend, though it would take a break of 1360 to confirm this was the case.
Today's video for subscribers looks at last week's trading in detail and examines the longer term implications of the break below 1250.