Gold trading at $1650.76

Gold’s near-term structure weakened Monday, as the price broke below the bull-trendline (drawn off 1651 low), following several attempts at 1684 (near-term congestion tops and daily Ichimoku cloud base). According to Slobodan Drvenica an analyst at Windsor Brokers Ltd., “A fresh weakness persists through the 1666/63 supports, which sees scope for an extension of the third wave from 1684 (part of broader reversal from 1695), towards initial target at 1657 (Fib 61.8% expansion).”

Moreover, “negative momentum is building up on 4h chart, keeping the downside favored, while bounces on oversold hourly conditions, face initial barriers on previous supports at 1663/66. Only a lift above 1671 (50% of 1684/59 descent) would ease bear-pressure and bring the price back in range.” he adds. At the time of writing the price of gold has settled at USD $1650.76 Monday, having pulled recovered recently off a low in the region of 1646.