Bullion Weekly Technicals 27 August 2013

Gold – Daily Chart

Has reached the 1400/1425 resistance area which we expect to cap

The gold price has reached the 1400/1425 zone as expected but we believe that it will soon begin to struggle.

We will retain our longer term bearish forecast while the gold price remains below the 1424.05 June high on a daily chart closing basis. This is expected to be the case since we are currently in the fifth minor up wave from the June low.
The current corrective rally higher should be followed by another decline back to the 1300/1250 region.
For this to happen a decline to below the 1352.20 August 20 low will have to be seen, however.
Failure at the current 1272.56 August low would confirm that another interim top has been formed. In such a scenario the 1200 region would be back in play instead.
Above 1425 sits resist ance at 1440.20/1441.11.
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