Gold fell steadily all day yesterday as the market digested the FOMC statement, hitting a low of 1319. After a tepid bounce back towards 1330, the market has continued to decline this morning alongside a resurgent dollar and seemingly unstoppable equities, with the price currently around 1318.
The decline in gold appears to be an impulsive move, suggesting that the rally to 1361 was corrective. We therefore expect the price to move back below 1300 on this move.
The decline in gold appears to be an impulsive move, suggesting that the rally to 1361 was corrective. We therefore expect the price to move back below 1300 on this move.
- Support can be found at 1310, 1300-1305, 1291, 1277, 1260, 1250, 1207 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 as a minimum.
- Resistance can be found at 1328-1330, 1338-1342, 1352-1355, 1360, 1375, 1400 and 1434. A break above 1434 would suggest a major rally was unfolding with a target of 1525 as a minimum.