Gold retested last week's highs at 1254/56 on Friday as hoped, which held the move higher as expected and we topped exactly here. This trade worked perfectly as we drift lower towards 1245. Below here good support at 1242 could hold the downside today but any longs need stops below 1239.
1254/56 could hold a move higher again today but above here look for a selling opportunity at 1258/59, with stops above 1262.
Weekly outlook: 1242 is good support but below 1239 risks a retest of 1234 before the low last week at 1228/27. We are in a bear trend so if this does not hold the downside this week there is little to stop a move towards 1215/14. Only a daily close above 1261/62 is positive this week.