The trend remains firmly down and there is a lot of resistance overhead, initially at the 50 DMA around 1245.
With Non-Farm Payrolls announced today we may see more volatility, with a strong number likely to boost the dollar and pressure gold and a weak number seeing the reverse.
Gold bulls will be concerned that dollar weakness has not led to gold strength in recent weeks, though any dolalr rally has seen strong selling in gold. The first full week of trading of 2014 has been positive for gold, though the early year rally appears to be fizzling out already, another concern for the bulls.
Support can be found at 1220-1225, 1218, 1214, 1210, 1200, 1190, 1188 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 1237-1240, 1246, 1250-1255, 1268-1270, 1277-1280 and 1291-1295. A break above 1268 would suggest an end to the short term down trend, though it would take a break of 1300 to suggest a more
significant rally was developing.
Today's video for subscrobers looks at the resistance areas in more detail and our thoughts on next week's trading.