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Gold Market Update: Gold Found Support At $1220

ByGoldTradingExperts.com
Published 12/16/2013, 05:44 AM
Updated 07/09/2023, 06:31 AM
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Gold found support at $1220 on Friday as the bulls fought back from Thursday's sell off to close the week at $1238. This morning, gold is trading back below $1230 and has fallen back in to the down trend channel as the bears attempt to keep the pressure on after last week's failed breakout attempt.

As we approach the end of the week, trading volumes will fall off sharply as traders leave their desks for the holidays, with gold now looking likely to see a 25% loss for 2013, the first annual loss for 13 years.

The big question is what will happen in 2014 - is this the end of the bull market or a mere correction in a continuing super bull?

Equities have corrected recently and the dollar is weak - with oil moving higher again, this should be an ideal environment for gold to rally, however this has not yet been the case. This is a worrying development and perhaps a warning signal regarding the underlying strength of the gold market.

Support can be found at $1223-$1227, $1217-$1220, $1212, $1200-$1207 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 $1230-$1235, $1245, $1250-$1255, $1268-$1270, $1277-$1280 and $1291-$1295. A break above $1270 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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