Interim low was made at 1180.04; is still expected to bounce back to the 1301.12/1321.50 zone.
- In June the gold price has aggressively dropped to below the 2009 peak at 1227.20 to 1180.04, before bouncing back to 1267.80 in early July before dropping to 1208.08 last week.
- Provided that this low underpins, we still believe that an interim low is in place and that a corrective move higher towards the 1321.50 April low is currently underway.
- Were the current July low at 1280.08 and the 1180.04 June low to give way, however, the 1162.45/1145.25 significant support zone would be targeted. It contains the January and March 2010 highs, July 2010 low and the 61.8% Fibonacci retracement of the 2008-11 up trend.
- Good resistance can now be seen between the 1321.50 April low and the 1338.05 May trough.
- We will retain our medium term bearish forecast while the gold price remains below the 1424.05 June high.
Gold – Weekly Chart
Dropped to levels last seen in August 2010 but is in the process of bouncing back.