Bullion Weekly Technicals 06 August 2013

Gold – Daily Chart

Remains below its four month resistance line which should eventually give way, though

Last week the gold price was rejected by the four month resistance line at 1330.29 but the past couple of weeks’ slide looks to be corrective within the rally we have seen off the June multiyear low at 1180.04.
This is to say that we expect the 1350 region to be retested within the next few weeks even if we cannot rule out a slide back towards the 1250 region be fore such a rise occurs.
We will retain our view of the 1350/1400 area being revisited as long as the gold price does not drop below the 1208.08 July low. Should this unexpectedly happen, the 1180.04 June low will be back in the picture. Failure at 1180.04 would open the way up for the 1162.45/1145.25 significant support zone to be targeted. It contains the January and March 2010 highs, July 2010 low and the 61.8% Fibonacci retracement of the 2008-11 up trend.
We will retain our longer term bearish forecast while the gold price remains below the 1424.05 June high.
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