Reached the 1300.00 resistance zone where it may struggle; if not, 1321.50/1338.05 should cap
- Since making a multiyear low at 1180.04, the gold price has been rising in three corrective waves and nearly reached our 1300.00/1321.50 target area. It consists of minor psychological resistance and the 1321.50 April low.
- Around the 1300.00 mark or in the next higher 1321.50/1338.05 resistance zone (April and May lows) it is expected to run out of steam, however, in which case another down leg towards the current July low at 1208.08 and the 1180.04 June low will soon be underway.
- Failure at 1180.04 will open the way up for the 1162.45/1145.25 significant support zone to 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.
- We will retain our medium term bearish forecast while the gold price remains below the 1424.05 June high.
Gold – Weekly Chart
Grapples with the 50% retracement at 1301.12