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Gold Bears Test Near Term Major Support

Gold spot price has turned bearish since 27th Feb, after hitting a one-and-a-half month high of 1263.73.

The short-term major uptrend line support was broken on 3rd Mar.

The current price is testing the near-term major support zone between 1220 – 1223, where there is stronger support. The downtrend is likely to be held temporarily above the level at 1220.

However, the price is still trading below the near-term major downtrend line resistance, the upside selling pressure is still heavy.

If the support line at 1220 is confirmed broken, the downtrend will likely further test the next significant support line at 1210.

The 4 hourly Stochastic Oscillator is below 20, suggesting a rebound.

The resistance level is at 1225.00, followed by 1227.00 and 1230.
The support line is at 1223.00, followed by 1220.00 and 1217.00.

Keep an eye on the US Trade Balance in Jan, to be released at 13:30 GMT this afternoon.

The US ADP employment change in Feb will be released this Wednesday at 13:15 GMT.
The US non-farm payroll and unemployment rate in Feb will be released this Friday at 13:30 GMT, it will likely cause volatility for the dollar, the dollar crosses and commodities.

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