The bearish tone for spot gold was confirmed once again yesterday on the daily gold chart with gold prices sliding lower, and confirming the pause point at $1125 outlined in Tuesday’s market commentary.  With spot gold now trading in a relatively narrow range the short term moving averages are now tightly bunched and provide little in the way of any meaningful analysis for the time being.  What is clear is that the minor resistance at $1125 and above is currently preventing spot gold from moving higher in the short term and as a result we may expect to see a retest of the $1050

to $1070 price area in due course and should this fail to hold then we could see a deeper move, possibly as far as $1025 in the medium term. Whilst gold prices continue to trade above the 200 day moving average then the longer term outlook remains positive, but until we see a break and hold above the $1150 price handle then the current trend has to be seen as sideways consolidation.
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