Gold has taken another step to the downside (2nd leg to the downside today. See chart above). Trader’s will now be watching the 1572.50 to 1573.80 as topside resistance if the price decline is to continue.
Giving the bears the nod today is also the holding of the 38.2% of the move down from the June 19 high today. That level came in at the 1586.72 and the high today came in at 1586.77. The 100 hour MA was also at the area. Failure against that key resistance level opened the door for the downside sellers (limited risk). Can they keep control? Stay below the 1573.80 area and the trend continues with the sellers in charge.
The low from yesterday at the 1566.26 level becomes the next target. The 1558.01 was the low from last week and will be the next level to eye.
