Will gold bounce?
Gold has bounced from $1105 support despite a brief foray below this key level. The $1105 mark represents the September low and breakout point from the late July/early-August basing pattern. Thus a bounce is a possibility from this area. However, we have not seen any signal of a reversal as of yet, and thus the downtrend remains in play. A close back above $1111 would give confidence of a move higher, with resistance levels $1114 and $1122 key near-term levels. However, until we see that, the downtrend remains in play, with near-term support levels at $1105, $1103 and $1098.