Intraday bias in gold remains neutral and for the moment and more consolidative trading could be seen above 1535 in near term. On the upside note that break of 1705.4 double top neckline is needed to indicate near term trend reversal. Otherwise, fall from 1923.7 is still expected to continue. Below 1535 will target 1500 psychological level next. Though, break of 1705.4 will argue that fall from 1923.7 might be over and will bring stronger rise towards this high.
In the bigger picture, current development indicates that gold has made a medium term top at 1923.7, ahead of long term projection level of 161.8% projection of 253 to 1033.9 from 681 at 1945.6 and 2000 psychological level. While the fall from 1923.7 is steep and deep, gold is still holding inside long term rising channel from 681 and above 55 weeks EMA at 1508.1. Hence, we're not too bearish in gold yet. Strong support is anticipated at 1478.3/1577.4 support zone to contained downside, at least initially, and bring rebound. However, note that sustained break of 1478.3 will strongly suggest that the long term up trend has already reversed.
Posted courtesy of Oil N' Gold.Com
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