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Gold falls into key support zone
Gold has been selling off in a very consistent manner of late, and, despite overnight gains, it would make sense to look for the same again. However, it is worth looking at this from a longer term perspective, at which point an ascending trendline (dating back to 2015) and the 76.4% retracement come into play. Since the turn of the year, gold has been trending upwards. For that to be negated, a break below $1195 would be required.
As such, there is a chance that we could see this market begin to turn around from here. For that to come into fruition we would be looking for a break through $1236. For now, gold is utilising last week’s lows of $1226 as resistance. This is accompanied by the 50% retracement. Watch that level as near term resistance. Yet it would not be a surprise to see the price move into a more bullish phase, with the $1236 level key to that. Until then, a break back below $1214 would point towards the market potentially ignoring this support zone and continuing its descent.
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