Gold: Range Break is Suggestive of Further Near-Term Downside
Gold has broken to the downside out of its trading range between 1441 (01/05/2013 low) and 1488. This now increases the probability that we can expect a continuation of weakness to retest the recent annual low at 1322. An hourly resistance can be found at 1450 (13/05/2013 high).
Gold has confirmed a weakening bias by breaking to the downside out of its long-term horizontal range defined by the support at 1523 (29/12/2011 low) and the resistance at 1803 (08/11/2011 high). The implied medium-term downside risk is 1287. A key support is at 1308 (28/01/2011 low). The recent rise is viewed as a rebound within an underlying downtrend.