Bullion Weekly Technicals 10 February 2014

Gold – Daily Chart

Key resistance at 1268.28/1272.56 is increasingly under pressure and should soon give way

The gold price once again digs deep into the 1268.28/1279.13 major resistance zone which consists of the December and January highs.

A daily close above the 1279.13 January high looks more and more likely by the day and would make us change our forecast to a bullish one.

In this case the area seen between the 200 day moving average at 1308.87, the July peak at 1349.31 and the mid- September and October highs at 1362.23/1375.37 will be in focus, together with the 2012-14 resistance line at 1377.89.

Only while the gold price remains capped by resistance at 1268.28/1279.13, will a retest of the 1225.00/1211.57 (early December low) support area remain probable.

A daily close below the late January low at 1237.96 will have to be made, for such a decline to become more likely again. Right now a break higher looks to be more probable.

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