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Continued moves lower for gold from long-term resistance
Gold is moving heavily lower this week, with the fall below $1327 completing a head and shoulders formation following a move into the long-term resistance level of $1357.
This points towards further downside to come. However, it is worthwhile noting that with a bullish wedge forming, there is a chance that we will soon see the price break higher to post a wider retracement before selling off once more. The break above $1319 would signal the beginning of such a move, with the resulting Fibonacci being drawn from the $1346 peak. Until then, further downside is likely over the short term.
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