The XAU/USD continued on its downwards trend yesterday despite starting the day higher, mainly in part to the strong durable goods data out of the US, it couldn't seem to break any lower than the $1298 price level though and closed slightly higher than the daily low. I am expecting gold to make a bullish bounce between the orange support line and the $1285 0.5 fib level with$1342 as the first target. The RSI isn't suggesting that the XAUUSD is massively oversold though so I'm not ruling out a short alternative if the 0.5 level is broken.with $1260 as the first target.
-Darren Wells
-Darren Wells