TechnoMeter

Gold prices have gotten crushed; moving from a swing-high above $1,250 just a week ago to below $1,210 as of this writing to tally a total move of -3.3% in a single week. To be sure, there is prime motivation for such a theme which is likely why we’ve seen such little respect of support as Gold prices have been on the way down. With a key Fed meeting next week in which the world may get just the 3rd rate hike from the bank in the past 10 years, the table is set for a continuation of USD-strength and few traders have wanted to stand in the way of the move-lower in Gold prices.



So there is legitimate continuation potential here for further bearish momentum. For traders looking to gain such exposure, resistance at the $1,215.17 area could be extremely attractive for such a scenario. This is the 38.2% Fibonacci retracement of the 2013-2015 major move in Gold prices, but perhaps more importantly this level has come as pertinent to price action over the past few months.

Support could be a challenge here given that prices have been dropping like they’re attached to an anvil. $1,200.51 is a big level as the 38.2% retracement of the ‘big picture’ move in Gold prices, taking the Bretton Woods fix of $35/oz up to the 2011 high at $1,920. This had also offered some support to price action’s bullish move last year; but given that this is just $10 away from current price, it could be difficult to imagine all of this bearish momentum coming to a standstill as soon as $1,200 comes into-play. But below $1,200 are a series of interesting levels that traders can investigate for those next potential iterations of support. Please note that these levels have been ‘widened-out’ to account for next week’s abundance of drivers, which can keep price action in Gold volatile in the near-term.

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