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Gold Market Update: Gold Is Running Out Of Support Levels

ByGoldTradingExperts.com
Published 11/25/2013, 06:44 AM
Updated 07/09/2023, 06:31 AM

After closing near the weekly lows on Friday, resulting in a large red candle on the weekly chart, the selling in gold has continued this morning with the price falling below last week's low.

Overnight the low was $1225 - the price is currently $1231 with the bears gunning for major support at $1180 as their next target.

The dollar is stronger this morning, as are equities, whilst oil remains weak - it appears that the same trading pattern as last week is establishing itself again in what will be a holiday shortened week. With Thanksgiving on Thursday, traders are likely to take Friday off and we would expect little price movement as we approach the end of the week.

Gold is running out of support levels before we test $1180, with $1207-$1210 the only meaningful support. The round number at $1200 may provide some support, however we suspect the bears have got the bit between their teeth and will force a test of $1180 as a minimum.

Support can be found at $1225, $1220, $1207-$12$10, $1200 and $1180. A break of $1$180 would have serious bearish implications for gold and suggest a decline to $1000-$1050 in the short term.

Resistance can be found at $1238, $1250, $1260, $1270, $1277-$1280 and $1291-$1295. A break above $1295 would suggest an end to the downtrend, though it would take a break of $1360 to confirm this was the case.

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