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Gold Market Update: Gold Stalled Around $1250

ByGoldTradingExperts.com
Published 01/09/2014, 04:30 AM
Updated 07/09/2023, 06:31 AM
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Gold stalled around $1250 on Monday and, with momentum waning, it was no surprise to see gold sell off yesterday. The price fell as low as $1218, finding suppot at the 20 DMA and a local top appears to be in.

The question for gold traders now is whether this is the beginning of a move back down to major support at $1180 or a pause in a new rally phase that will take gold back above $1260.

We suspect the former - the down trend remains firmly in place and equities and the dollar are moving higher. The release of the FOMC minutes yesterday produced only a muted reaction and a stronger than expected ADP jobs report helped the bears cap the price below $1230.

Support can be found at $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 $1237-$1240, $1246, $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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