Gold Hits a Three Week Low

Gold (1201.63)

Well, the bottom fell out of the yellow metal and we are trading at a three week low. We turned lower as expected, then the move lower lost momentum, then all of a sudden the sellers came back into the market with a vengeance.

Let’s look at the technical analysis. Please refer to the above Daily MT 4 chart. We are now looking a challenging the technical support at $1,193.20 per ounce. A close below that level will target the congestion area from 1174.00 to 1178.85.

Should gold push higher, then we see resistance at 1216.90. A close above this level will target 1231.50 once again. With the absence of a clear bullish reversal coupled with the renewed bearish momentum, this is not very likely to happen. We are focused on support levels for now.