Bullion Weekly Technicals 24 September 2013

Gold – Daily Chart

The downtrend remains intact despite last week’s brief surge higher

Last week the gold price suddenly shot up from its low at 1291.59 to the breached three month support line at 1375.37 from where it began to slide again.

Since the rejection from that resistance line is emphatic we believe that the medium term downtrend remains intact.
We will hold onto our bearish forecast while the gold price remains below the 1375 level on a daily closing basis.
Last week’s low at 1291.59 and the 1272.56 August low therefore remain in focus. Failure at the latter level will confirm that gold has resumed its medium term downtrend.
In such a scenario the 1200/1100 region will be back in the picture.
Only an unexpected rise above the 1434.05 August peak would void this forecast and target resistance at 1487.62/1488.17 instead.
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