Gold Looking Ill

Gold has been having a tough time recently. It's clear that the precious metal is struggling to hold the gains made during the year but as time progresses towards the end of the year, Gold has been neglected and has been losing its value. The downmarket started from the high of $1,375 on 11 Jul and now a hundred dollar cheaper Gold is trading at $1,270 with a low of $1,241.

What is more worrying is that the last gains have come to pass with great difficulty and if today we close at current or lower price, there is a great chance of a drop tomorrow and the next week. The price is gravitating towards the 200SMA which indicating that a movement in either directions is likely to occur. First support is seen at the last low, while major bear target is of course the psychological and long awaited $1,000 level.

However, Gold has had an amazing year with more that 30% rise, beating almost all of the other markets.

Chart: XAU/USD D1