Whilst gold achieved a ninth consecutive higher low yesterday, today the sequence has been breached. Daily momentum indicators are just showing the early signs of falling over, while the initial price moves in the early hours of this morning has taken gold back below the 38.2% Fibonacci retracement of the $1392/$1277 correction at $1321. Furthermore, the intraday hourly chart shows a serious breach of the uptrend channel support. The hourly momentum indicators are also now on the limit and need the current support to hold otherwise the outlook may begin to change very near term. There is good price support in the band around $1315 and if this holds then the broken trend channel could still turn out to be a consolidation. The key near term support is at $1313.74 and a breach would imply a potential move back towards $1300 once more. If the bulls can regain their poise a push above $1330.90 then the way is once more open towards the resistance on the daily chart at $1342.43.
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