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Gold Continues Consolidate, While Down Trend Remain

ByGoldTradingExperts.com
Published 08/27/2014, 06:51 AM
Updated 07/09/2023, 06:31 AM

Gold continues to consolidate in the triangle pattern on the daily chart that has formed during 2014, with the price touching the lower boundary at $1273 on Thursday last week.

The price has been struggling to break above the 65 week MA and the long term down trend line for the past couple of months and remains at a crucial juncture - in simple terms a break above $1350 would be very bullish for the longer term and a break of $1240 would suggest a return to $1180 and a continuation of the bearish trend.

Equities and the dollar have both rallied hard in recent trading sessions, putting gold under pressure, whilst Oil is struggling to hold above $94 a barrel, adding to the bearish picture.

Gold tends to perform well in September and with the price at the lower boundary of the triangle and equities becoming overstretched, we could see a rally develop from here.

Support can be found at $1273, $1263, $1257-$1260, $1250-$1252, $1237-$1240, $1220-$1225, $1210, $1200 and $1180. A break of $1180 would have serious bearish implications for gold and suggest a decline to $1000-$1050 in the short term - a failure to break the 65 week MA would make this scenario much more likely.

Resistance can be found at $1288, $1291-$1292, $1300-$1302, $1310-$1312, $1322-$1325, $1333-$1335, $1340-$1342, $1352-$1354, $1392-$1395, $1400, $1420 and $1435. A second failure to break through the key 65 week MA would suggest that the intermediate down trend is intact and a retest of $1240 and possibly $1180 is likely.

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