Gold prices declined once more on Friday, with spot prices slipping to $1,233 per ounce while Gold for February delivery on the Comex declined $6 (0.5%), settling at $1,241.40. Investors continue to stress over China’s deteriorating domestic economy, and the possible widespread fallout for the broader global economy and market fears helped to push worrisome investors further into Gold, while the greenback caught extra bids on Friday, rising 0.4% as Gold settled.
Gold prices have broken back below December’s trendline support, which opens the case for further losses if bulls cannot get back above 1250 in the coming sessions. The 4hr and daily DMI lean bearish. S3 at 1233 is was tested which meets the 100-D SMA. A break there will open risk to 1211 late Nov lows and 1210 round number. On the flip side, on a breach of the 21-4hr SMA located at 1242, bulls can reset their sights for the 50% Fibo at 1262, just above the 200-D SMA that is found at 1255.
Support levels: 1240 1238 1233
Resistance levels: 1246 1249 1252