Gold is approaching its key low at 1180.50 (28/06/2013). Strong support is anticipated close to this key level for a short-term recovery higher. However, failure to hold over this current annual low would instead open up scope for a substantial extension lower.

In the longer term, we continue to view the rise from 1181 (28/06/2013 low) as a counter-trend move within an underlying bearish trend. Therefore we favour a minimum move towards the key support at 1181. A first key resistance is given by the medium-term declining channel (around 1318).

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