Although GOLD still faces downside risk declining further on Thursday, recovery threats are now building up. On the upside, resistance is seen at the 1,318.30 level where a violation will aim at the 1,331 level.
Above here if seen will trigger further gains towards the 1,359.00 level followed by the 1,380.00 level. Further out, resistance comes in at the 1,400.00 level.
Conversely, support comes in at the 1,277.58 level with a turn below here targeting the 1,250.00 level followed by the 1,230.00 level. Its daily RSI is bearish and pointing lower suggesting further weakness.
All in all, GOLD remains biased to the downside in the short term.
Guest post by FX Tech Strategy