Gold: Short-Term Top Formation in Place
Gold has broken the support at 1385, validating a short-term top formation. The implied downside risk is at 1349. The support at 1374 has been breached. Another support is at 1355 (22/05/2013 low). The short-term technical configuration remains negative as long as prices remain below the hourly resistance at 1389.
In the medium-term, 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).