September 12, 2013 – Gold (daily chart) has fallen back down towards key support around the 1320 price region, establishing a new four-week low. This occurs during the course of two weeks of marked bearishness after the precious metal turned down from major resistance just above 1425 in late August.  The potential recovery thus far lasted only for about two months, from the 1180 low in late June to the noted high in late August, before breaking down in the past two weeks. In the process of this drop, the price of gold has broken down below a key uptrend support line extending from that 1180 low, as well as tentatively below the 50-day moving average. Having just dropped down to dip towards the noted 1320 support level, the next major support target to the downside in the event of a further breakdown below 1320 resides around the 1265-1270 price area.
James Chen, CMT
Chief Technical Strategist
City Index Group
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