Richard Perry
Independent Analyst
The volatility in the gold price remains high, as for the second time in 3 days there is an intraday rally that is rejected to leave a rather weak candlestick. Not only that, but on the intraday hourly chart there is now the formation of a rather well defined downtrend over the past 8 days as a series of lower highs has been left, the latest being at $1212.80 and $1221.40. The downtrend resistance currently comes in at around $1209. I an increasingly convinced that there will be further downside pressure on the old key low at $1180.70 and a move below there would confirm a top pattern that has been threatening to take hold throughout this week. Selling into the intraday rallies seems to be a viable strategy once more.
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