Technical forecast for Spot Gold

Spot Gold headed lower as expected & hit our target of 1585. However we were surprised to see prices continue to tumble & hit 1555. There are early signs this morning that we have made a low for the correction & could hope for a bounce back to 1585. This should be a struggle to overcome but a push higher then targets 1604, possibly as far as 1611 but this should be the top at this stage.

1555 may hold if it is tested again but we will need to keep stops tight below as a break could see 1548/46. If this support breaks there really is very little to stop a move towards 1533 with 1531/27 the next area of support. This area is the low for 2012 and as such should be a welcome buying opportunity.

Jason Sen began his career in the options pits on the trading floor of LIFFE in 1987 at the age of 19, making markets on his own account. In 2001 when the trading floor closed he successfully made the transition to day trading on computer screens. Jason always had an interest in technical analysis throughout his trading career but began to study this area in depth from 2006. www.daytradeideas.com has established itself as the leading provider of... More