Gold broke below 1239 hitting the next target of last week's low at 1228/27 and continued lower towards our next downside target of 1215/14 (see weekly outlook below). Oversold short term, but fighting the bear trend is too risky as we have said many times. Resistance at 1222/23. but above here 1226 could hold a move higher. However, shorts need stops above 1229 for a selling opportunity at 1232/34.
Immediate support is 1217/15 and could hold the downside. Today we may need to consolidate yesterday's losses, but a break below 1214 keeps the market under pressure and targets 1208.
Weekly outlook: 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.