The price drifted back towards 1300 before a flurry of late short covering saw gold close the week at 1313, posting a bullish "hammer" candlestick on the daily chart.
The 50 DMA at 1312 continues to prove a difficult area of resistance for gold and the down trend remains intact this morning with gold little changed from Friday's close. We expect to see further selling in what could be a quiet trading week with little data for the markets to interpret and the start of the holiday season ushering in thin trading volumes.
Equities remain near to all time highs and oil has found further strength as it moves towards $100 and $114 a barrel. The dollar appears to be starting a new rally leg after a sharp correction - we expect this will be the catalyst that sees gold prices resume their decline.