GOLD: While our immediate bias on GOLD remains higher on correction, the commodity will have to take out the 1,267.75 level, its Dec 10’2013 high to convince the market of price extension. However, as long as the mentioned level continues to hold as resistance the risk remains lower despite the mentioned recovery. On the upside, resistance resides at the 1,267.75 level, its Dec 10 2013 high. A cut through here will create scope for a move higher towards the 1,300.00 level where a violation if seen will turn focus to the 1,350.00 level. Conversely, support stands at the 1,218.35 level, representing its Jan 08’2014 low. This level must hold to prevent a return to the 1,182.33 level, its Dec 31’2013 low from occurring. However, if this is violated it will aim at the 1,150.00 level followed by the 1,100.00 level with a turn below the latter shifting attention to the 1,050 level.. All in all, GOLD remains biased to the downside in the medium term.
Article by fxtechstrategy.com