Forex Marketz Daily Forex News – Fully Markets Update
Gold (1255.10)
The bottom has fallen out of the yellow metal and we are approaching its monthly low. Gold has pushed significantly lower after forming a bearish evening star last week. Please refer to the above daily MT 4 chart. This occurred just below 1255.10, which is a level supported by the 55 day moving average (DMA). This technical level is proving to be a formidable level. If we had closed above it, we could have seen a nice recovery. We expected the downturn to occur but it toook awhile to happen as gold consolidated for a bit last week and into the middle of this week.
Looking at today’s technical analysis, sellers are now taking aim at $1,193.20 per ounce. A daily close below this level will target the congestion area ranging from 1174.00 to 1178.80.
The alternative view would see gold consolidate at this price level then turn higher. We would need to close back above 1216.90 to challenge resistance at 1231.50.
