Gold looks toppy

The last few days were negative for gold. The yellow metal regressed beneath $1,300 again, to assault on the $1,280 key support (see Featured Chart). 

Technically, the area around $1,280 is an important band. Thrice this level repelled the bears; note this level is reinforced by the long-term trend indicator. If this floor gives way, gold may suffer from further selling pressure as technical stops could be triggered.

For Silver, prices have already crossed beneath the long-term trend indicator. This bearish crossover converted that trendline into resistance (see below). A break of $15.00 is near-term negative as the next lateral support is at $14.50.

Overall, the precious metal sector appears to be suffering from the more positive risk appetite and Palladium’s sharp correction. If stock markets rally further, investors may continue to sell gold.

 

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