Last week’s failure to gain a foothold above the 21 & 100-DMAs has resulted in a sell-off that has seen gold trade at fresh 3 month lows confirming the dominance of bearish pressure. Immediate focus now shifts to the $1240.5 June monthly low. The key concern for bears is the proximity of the Bollinger band base ($1263.0) which may limit downside follow through. Bulls now need a close above $1280.0 to ease renewed bearish pressure.
RES 4: $1293.8 – 100-DMA
RES 3: $1289.9 – High Sept 1
RES 2: $1280.0 – Low Aug 27 now resistance
RES 1: $1271.6 – Monthly Low Aug 21 now resistance
LPRICE: $1266.2
SUP 1: $1258.6 – Low June 11
SUP 2: $1252.0 – Weekly Bollinger band base
SUP 3: $1240.5 – Monthly low June 3
SUP 4: $1231.6 – Low Jan 23