Gold back down to major support zone
Gold tumbled below the crucial $1333 and $1330 support levels yesterday, after price fell out of an ascending triangle pattern. However, despite these losses, all is not lost for gold bulls, with price coming into a very interesting area of support.
The overnight lows almost touched trendline support, which also coincided with the 76.4% retracement drawn from the 28 June low of $1305. That low is in the midst of a major cluster of support levels which are unlikely to be broken with this current move lower.
With that in mind, this current area seems relatively cheap, with a move higher likely soon enough. As such, while we could see further short-term weakness given yesterday’s move, it makes more sense to be bullish for a move back towards the upper end of this wider symmetrical triangle.