Yesterday we said: “Gold weakness continues with the break below 1200 key level the market outlook turns more bearish and we can expect more continuation, the next support for the day will be found at 1190$ any break below would open the door for more continuation in the 1180$ area. To the upside, in case of bounce the precious metal could head back to 1200$ resistance but the price action is rather bearish so far today. Our bias is neutral.”
Gold is in a consolidation phase, the price has no clear direction but holds pretty well given the current USD strength. Is this resiliency to the USD a bullish sign? We have a minor support at 1193$, if broken the price could head easily to 1183$ major key support of the 1180$ - 1222$ mid-term range. To the upside, 1200$ would be the trend shifting level from bearish to bullish. Our stance for the day is neutral.