Crucially, the price broke below last week's low at 1225, making a low of 1217 before rebounding slightly. This morning, gold remains under pressure and is trading near yesterday's lows. Following the break of 1225, we expect a test of 1200-1207 in the short term, with a test of 1180 a dec possibility.
The price is back inside the down trend channel and is falling despite near term dollar weakness - this is an ominous sign as any sustained dollar strength here will see gold plunging towards 1180. Equities remain strong and oil weak, it doesn't look good for gold.
Support can be found at 1220, 1217, 1200-1207 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 1225-1227, 1230, 1235, 1250, 1260, 1270, 1277-1280 and 1291-1295. A break above 1295 would suggest an end to the down trend, though it would take a break of 1360 to confirm this was the case.
Today's video for subscribers looks at the recent trading in gold and our thoughts for the next month.