Gold Turns Lower After Failing Near $1178.85

Gold (1156.32)

The yellow metal has once again failed to bounce higher. We have met stiff resistance just below a cluster zone at 1178.85 to 1180.85. As you can see on the above daily MT 4 chart, we have another bearish reversal signal in the form of an engulfing candlestick.

We note near term support near 1130.10. A daily close below this level will open the doors for a challenge of 1192.80. The alternative view would need a break back above 1180.85 with a daily close. If this happens buyers would then target 1212.20.

Following up on an analysis done by our Jason Schwatzman,  the sellers have returned with a fury as commodity futures across the spectrum from gold to crude oil are weak. This weakness is supporting a global rebound in the stock markets.