Gold technical analysis Feb 11, 2015

A wave of US dollar strength is the dominant theme at the moment and it's spilled over to commodities. Gold broke the February lows in the past half hour and then quickly fell $10 as it broke the 50-day moving average.

Prices are at the lowest since Jan 11 but technical bulls have a final level of support to watch before all of the January gains are threatened. That's the 61.8% retracement of the 2015 rally.

The start of the lunar new year holidays is typically a major time for buying but that may be starting to fade with the holidays less than two weeks away.

At the moment, it will be tough for gold to find a base because US dollar momentum is surging. But if gold can level out here then the outlook is still positive.