Richard Perry
Independent Analyst
Yet again the gold price has seen a minor rally sold into and the pressure is to the downside once more. The consolidation lasted only a couple of days this time with gold selling off as the FOMC meeting inspired another dollar rally. This has now strengthened the resistance which has come around the old support of the June low at $1240.60 as a reaction high at $1241.90 has been seen. This has also come just under the resistance of the lower bound of the old downtrend channel. This suggests that the overhead pressure is mounting and that rallies will continue to struggle to make any headway before the sellers return. The initial reaction in as European session has begun has been for a small rebound, but I still expect to see any bounce sold into. The key breach of the $1240 June low opened the next key low from December at $1184.50 and it will take a big effort from the bulls to prevent this being retested now.
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