Continues its downtrend and targets the 1208.08/1180.04 support zone next, then 1162/1155.
- Gold continues its descent and since it now clearly trades below last week’s three month low at 1262.72 we have reverted to a bearish outlook.
- The first downside target is the 78.6% Fibonacci retracement of the June-to-August advance at 1234.40 but the next lower June and July lows at 1208.08/1180.04 represent more significant targets for the weeks to come.
- ’The long term downtrend is expected to take the gold price to the 1162.45/1154.72 support zone, made up of the January 2010 high, July 2010 low and the 61.8% Fibonacci retracement of the 2008-11 uptrend.
- We will retain our negative outlook while gold remains below the late September high at 1344.55.
Gold – Weekly Chart
Targets the 1162.45/1154.72 support zone.