Gold Tumbles Down

Gold has lost some significant amount of its shine in the last few days. Only on Monday, the precious metal was trading at a high of $1,342 and has been depreciating since then. Gold bears seem to have taken the initiative as prices are down some $20 to a low of $1,322 made earlier today.

What creates the uncertainty, however, is not the latest drop but the current roller-coaster Gold has gotten into for the last three months. Gold is trading in a very narrow range between $1,370 and $1,310. Some major banks predict a price of $1,300 which might actually come to pass as bulls are apparently losing the grip and sooner than we think, price might retreat to the lower $1,300's.

Until then, major resistance is of course the $1,400, only after first resistance at $1,345 has been taken out. First support is seen at $1,315, while major support rests at $1,290.


Chart: XAU/USD D1