Richard Perry
Independent Analyst
The $1240 support has now been decisively breached. Aside from minor supports at $1231.36 and $1218.44 there is little really now to prevent a full retracement back to the crucial December 2013 low at $1184.50. The strength of the selling pressure is also now becoming a real concern for the gold bugs. The move has now accelerate below the bottom of the downtrend channel as momentum indicators have moved into an extremely weak configuration. The overnight price action would suggest that the old support of $1240.60 is now an initial basis of resistance. With the RSI now back at below 28 the idea position would be to sell into a technical rally. The first real resistance comes in between $1260/$1280.
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