Gold

The outlook remains uncertain on a medium term basis as the short term bearish sell off has just taken a pause for breath. The past two sessions have seen minor support build, with two successive positive sessions, something that has not been seen since the price topped out at $1306. However the 3 week downtrend remains firmly intact around $1250 and this move is still effectively counter-trend and looks to be a bear rally. I am still expecting the resistance band $1230/$1245 to contain the rally and see another lower high posted as the pressure of this corrective phase tells. Having previously lost the support around $1222, my concerns about the medium term outlook remain and I expect the low at $1216.50 to be retested.