The downtrend remains intact for gold

Commerzbank commoditiesGold – Daily Chart

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.

Commerzbank about the gold price, 1 week and 1 monthGold Daily Chart - 24 September 2013

Gold – Weekly Chart

Still has the 1200/1100 zone in focus.

A weekly chart of the gold price

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