GOLD..

The bears made another statement of intent yesterday as the price decline now confirms my belief that the medium term outlook is becoming increasingly negative. Another strongly negative daily candle was posted as the breakdown of the Fibonacci retracement support at $1222 of 61.8% of the bull run was confirmed. This now suggests the likelihood of a full retracement to $1168 is now high. The RSI closed yesterday at its lowest level since mid-November, with Stochastics also in negative configuration. The intraday hourly chart shows a sharp fall as the support at $1216.50 gave way yesterday. This shows that this is now the overhead supply and that perhaps waiting for the gold price to just unwind slightly back towards $1216.50 would be a good chance to sell. There is around $20 of resistance up towards $1236.50. Expect further weakness to test the $1203.30 low from yesterday, but there is now not too much support until the key low at $1168.50.