Gold Turns Negative, Slips Below $1280
Gold
has now turned lower, extending its weakness for fourth consecutive
session, sliding further below $1280 level to currently trade near
$1278, though off day's low of $1274.50.
Extending its reversal
from $1300 handle, gold prices on Wednesday fell to as low as $1272
before recovering a bit, on mixed US economic data, to $1279. On
Thursday, too, gold saw some initial buying interest that lifted the
metal to $1283 but resumed its corrective move and dropped to an
intraday low near $1274.
From technical perspective, $1280-82
area represents a key confluence resistance area comprising of 23.6%
Fibonacci retracement level of $1207-$1303 up-swing and a short-term
descending trend-channel resistance formation on hourly chart. Hence,
clearing this immediate strong resistance would be key for enabling the
metal to resume its prior appreciating move.
Technical levels to watch
On
the downside, Wednesday's low level near $1272, closely followed by
$1266-65 confluence region, are immediate support levels. The $1266-65
support constitutes 38.2% Fibonacci retracement level and the ascending
trend-channel support. Hence, a decisive break below this strong support
seems to accelerate the fall immediately towards 50% Fibonacci
retracement level support near $1255 region.
On the upside,
$1280-82 area remains immediate resistance to watch for. On decisive
break-through this strong resistance, the metal seems to make a fresh
attempt to move back towards $1300 psychological mark resistance.
