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Gold Has Drifted Steadily Lower, Briefly Dropping Below 1200 Yesterday

ByGoldTradingExperts.com
Published 03/05/2015, 04:34 AM
Updated 07/09/2023, 06:31 AM

LONG TERM TREND: BEARISH
INTERMEDIATE TERM TREND: NEUTRAL
SHORT TERM TREND: BEARISH
VERY SHORT TERM TREND: BEARISH

After failing to break the key 1223 level, Gold has drifted steadily lower, briefly dropping below 1200 yesterday.

We warned in Tuesday’s blog that the bears were likely to pressure gold if the price could not break this resistance level very soon, and it now seems very likely that the price is heading back down towards the 2014 lows.

Equities remain near all time highs, reducing investment demand in gold as participants look for yield, the Dollar is pushing sharply higher after a short period of consolidation and Crude Oil remains weak near $50 a barrel.

Support can be found at 1198, 1195, 1191, 1180-1183, 1175-1178, 1167, 1154, 1145-1147, 1131, 1124, 1100, 1085, 1045 and 1000. Gold has bounced back after breaking below the critical 1180 level and is now moving higher after a classic "bear trap". The break of the intermediate down trend looks like it may have been a fake move in this difficult market.

Resistance can be found at 1206, 1209, 1215, 1220-1223, 1228, 1233, 1240, 1246, 1252-1256, 1271-1273, 1278, 1282-1284, 1290-1292, 1297 and 1303-1305. The break of the intermediate down trend appears to have been a fake move, with the price now headed lower again. A break of 1131 would be very bearish for gold and suggest a return to 1000-1050.

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