Gold closed the week at 1244 and this morning is around unchanged, with the dollar well above the key 81 level and equities stabilising after last month's sharp falls.
With gold back inside the down trend channel, the bears are back in control and will look to press gold below last week's key support at 1238 to accelerate the move to the downside, whilst the bulls need to show what they are made of and lift the price back above 1250 and towards 1280 to resume the faltering rally.
We suspect the bears will win the day and the chart patterns suggest a return to 1180 this month.
Support can be found at 1237-1240, 1220-1225, 1210, 1200, 1188-1190 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 1250-1255, 1268-1272, 1277-1280 and 1291-1295. Holding support at 1250 and a subsequent break above 1279 would suggest an end to the intermediate term down trend, though it would take a close above 1300 to confirm a more significant rally was developing.
Today's video for subscribers looks at the developing chart patterns in more detail and our throughts for our next trade.