GOLD: Turns Lower, Set To Extend Weakness

GOLD: With GOLD failing to hold above the 1,267.75 level, its Dec 10 2013 high and turning lower the past week, further decline is likely in the new week. Support comes in at the 1,231.48 level. Further down, support resides at the 1,218.35 level, representing its Jan 08’2014 low. This level must hold to prevent the commodity from returning to the 1,182.33 level, its Dec 31’2013 low. However, if that level is violated it will turn attention to the 1,150.00 level followed by the 1,100.00 level. Conversely, a return above the 1.279.08 level and its declining trendline resistance is required to annul its present bear pressure and trigger further upside towards the 1,300.00 level where a violation if seen will turn focus to the 1,350.00 level. Further out, resistance stands at the 1,400.00 level, its psycho level. All in all, GOLD remains biased to the downside medium term.

Article by www.fxtechstrategy.com