Gold continues to look vulnerable
Gold (XAUUSD) continues to disappoint, with yesterday’s significant breach of the interim trendline support at $1310. After a shaky start to the month Gold had managed to pull itself up $50 or so to just under $1325 before succumbing to selling pressure. It’s starting to look very uncomfortable on buying, and while traders are having to work quite hard to encourage any rally, the bears simply seem to have enough power to overwhelm the market whenever they feel it’s rallied far enough. This does not bode well for the future, but as mentioned earlier in the month, the expected support below $1275 should prove sticky, with further buying interest expected all the way down to $1225. If the bears can overwhelm these supports though, the next significant target will be a test of the $1160 level which was last seen over 2 years ago, in January 2017.