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Gold Market Update: Gold Found Resistance Near $1255

ByGoldTradingExperts.com
Published 01/15/2014, 03:56 AM
Updated 07/09/2023, 06:31 AM
GC
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Gold found resistance yesterday at the long term down trend line near $1255 and fell back to trade around $1240 by the close. Equities recovered from the recent sell off and the dollar climbed following Friday's shock NFP release that seems to have been just a blip in the overall prevailing trends.

This morning, gold is under mild pressure as the dollar finds more strength and nears the key 81 level that the bulls must regain to tip the scales in their favour. It is interesting that oil remains weak and inflation very subdued, making a strong rally in gold less likely.

Equities remain near all time highs and it is clear that further equity strength will be bearish for gold - we suspect that gold will turn over here and retest $1$180 within a couple of weeks.

Support can be found at $1237-$1240, $1220-$1225, $1218, $1214, $1210, $1200, $1190, $1188 and $1180. A break of $1180 would have serious bearish implications for gold and suggest a decline to $1000-$1050 in the short term.

Resistance can be found at $1250-$1255, $1268-$1270, $1277-$1280 and $1291-$1295. A break above $1268 would suggest an end to the short term down trend, though it would take a break of $1300 to suggest a more significant rally was developing.

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