Gold has held the $1225 support, and bounced. Short term we have $1236/38 as resistance and we need to see if we can break above this barrier. At the moment we've stayed below and eased the overbought scenario that has been evident. Slightly I might add. However, if we break this $1238 area there is scope for further corrective pressure initially to $1242 and then possibly 1251.
Given the medium term chart pattern however,any move higher looks corrective and should be sold. I feel Gold is now on the downward spiral, even as oversold as it is, and that we will try for the $1201/1199 support. I believe we are too near this important level not to at least try for it. Cover shorts to here.
We are only then looking to re-sell $1194 for the magical $1180 support. This scenario will stay in place for the rest of this week unless Gold breaks out of the $1251 resistance target. Only then we will have a chance to correct further with $1264/65 then targeted.
