From yesterday: “Gold is currently attempting to make new lows and is trading below $1’160/ ounce. With last week’s low at $1’147, a move below this level will give scope for a drop towards $1’105. A bounce from here should be capped by a falling trend line off last week’s highs by $1’163 and the 50-period moving average on the 4-hour chart by $1’171. A break above these levels will give scope for a rally towards $1’200”.
Gold tested $1’150 yesterday but failed to break lower and bounced up slightly to $1’157 today. The precious metal remains in a bearish path and struggles to make headway above $1’155. We expect another test of $1’150 today and eventually the key near-term bottom of $1’147. A breach here will give scope for a downward acceleration towards the low $1’100. A break above the falling trend line by $1’162, will give scope for a further squeeze higher to test $1’167.