The downtrend remains intact despite last week’s brief surge higher.
- Last week the gold price suddenly shot up from its low at 1291.59 to the breached three month support line at 1375.37 from where it began to slide again.
- Since the rejection from that resistance line is emphatic we believe that the medium term downtrend remains intact.
- We will hold onto our bearish forecast while the gold price remains below the 1375 level on a daily closing basis.
- Last week’s low at 1291.59 and the 1272.56 August low therefore remain in focus. Failure at the latter level will confirm that gold has resumed its medium term downtrend.
- In such a scenario the 1200/1100 region will be back in the picture.
- Only an unexpected rise above the 1434.05 August peak would void this forecast and target resistance at 1487.62/1488.17 instead.
Gold – Weekly Chart
Still has the 1200/1100 zone in focus.