INTERMEDIATE TERM TREND: NEUTRAL/BEARISH
SHORT TERM TREND: BEARISH
VERY SHORT TERM TREND: BEARISH
Gold has continued to fall steadily this week, breaking below the 1225 level that has held as support to fall as low as 1216 so far. The break of 1240 suggests an eventual return to 1180 is now a high likelihood, with a break of this support level a real possibility.
This would confirm the long term bearish trend remains intact, with a return to 1000 very likely and even lower prices a possibility.
The dollar strength and continued interest in equities is pressuring gold and the weak oil price is not giving any support to gold.
Support can be found at 1216, 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 - the failure to break the 65 week MA and the break down of the triangle pattern on the daily chart has make this scenario much more likely.
Resistance can be found at 1225, 1240, 1257-1258, 1263, 1271-1273, 1277, 1290-1292, 1300-1302, 1310-1312, 1322-1325, 1333-1335, 1340-1342, 1352-1354 and 1392-1395. A second failure to break through the key 65 week MA suggests that the intermediate down trend is intact and a retest of 1180 is now likely.
Today's video for subscribers looks at the recent trading in more detail and our strategy for our next trade.