Bullion Weekly Technicals 20 August 2013

Gold – Daily Chart

Recent advance is likely to run out of steam around the 1400/1425 area

The gold price continues its rise from the June low at 1180.04 but is expected to run out of puff around the 1400/1425 zone.
We will retain our longer term bearish forecast while the gold price remains below the 1424.05 June high on a daily chart closing basis. This is likely to be the case since we are currently in the fifth minor up wave from the June low. The current corrective rally higher should be followed by another decline back to the 1300/1250 region.
Short term the gold price remains bullish, however, and could still reach the 1395.41 June 13 high as well as the minor psychological 1400 region this or next week.
For now unexpected failure at the current 1272.56 August low would negate our short term bullish outlook, however. In such a scenario the 1200 region would be back in play instead. This is not our favourite scenario, though.
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