Gold lacking direction
Gold has become increasingly difficult to predict over the past week, with the $1178 support level being passed through on a number of occasions. It is worth bearing in mind that the price has not always respected $1178 to the point, and thus it is worth expanding the support zone to incorporate historical and recent support between $1175 and $1178.
Nevertheless, last week’s move through this support zone shows a possible weakness in gold and I could see another move lower in accordance with this. I am not confident enough in the direction we are heading to trade this, and as such will await a bullish move above $1192 or bearish move below $1172.