Gold has been moving rapidly on the charts as of late, and after last Fridays non-farm payroll it has slipped lower and managed to find support on the 50 day MA (simple), so that begs the question of where to now for gold.
For the most part, it’s very much possible we could see ranging and consolidation when we take into account fundamental factors. US labour market is improving and this increases the possibility of a rate rise in the future – Yellen has very much said so. But at the same time we have Greece having a showdown with the Euro-zone, how they intend to dig themselves out of that is likely to lead to a small amount of chaos. Though ultimately you can’t just do away with their debt as it defeats the purpose of QE to begin with.
So while the overall trend is downwards, expect support and resistance levels to come into play. Additionally, I would look at the moving averages as it’s likely we will see price squeezed between these zones until a breakdown on the bearish side, as long term trend still dictates further falls. But in the short term I wouldn’t be surprised to see it bounce back up after the recent pullback on the 50 MA. It’s also likely the 200 day MA will be used as dynamic resistance so be aware of that as well as the 1256 resistance zone - which is looking very strong.