Gold price broke below important support area of $1,280-90 yesterday. Trend remains bearish. Price should continue lower towards $1,250-60 over the coming weeks. A bounce towards $1,280-90 as a back test is possible.
Black line – major trend line resistance
Green rectangle – support area
Red rectangle -target area
Gold price has broken through support at $1,280 and the RSI confirmed the strength of this move by making a lower low. Our target for Gold over the coming weeks is at $1,250-60 first and then $1,225. A bounce towards $1,280-90 or even $1,300 could come before this target is achieved. Our bearish view remains our primary view as long as price is below the black downward sloping trend line resistance.
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