Technical Forecast for Spot Gold

Spot Gold tested & held support at 1273/71 for a bounce as predicted as we bottomed at 1274. If we manage a recovery towards resistance at 1295/1300 this area could hold the topside today as we start to look overbought on the daily chart. Remember we are in a strong down trend so eventually we should head lower again. However use stops on shorts above 1308 as a break higher could allow a move towards 1325/30 for an excellent selling opportunity.

 

Support at 1271/68 could be tested again today but the outlook is becoming more negative so if we break lower look for 1260 & may be as far as a test of support at 1255/54.