The gold price once more lost intraday support yesterday as the near term correction is now on the brink of becoming something more significant. I have been talking about the support at $1221/$1222 being the final line between this being a correction within the medium term bull run and turning more bearish. Gold is now on the brink today as this support is being tested. I am therefore close to turning bearish again. There has been an acceleration away from the near term downtrend which currently comes in around $1257 and the resistance levels come in at $1228.25 and then up at $1245.80. A breach of support at $1221.40 which was the 6th January high but also takes gold below the 61.8% Fibonacci retracement (around $1222) of $1168/$1306 means that the bulls would have lost control and decline towards the reaction low at $1204.30 is the next area of support.
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