FxWirePro: Gold to break into new yearly low in April

Gold bugs in trouble,

• Last week’s price action made it clear that the yellow metal is likely to remain bearish this week. Last to last week’s bullish Doji was countered by last week’s very bearish ‘Grave-stone’ Doji in the candle chart. Refer to the weekly chart above.
• And as expected, gold is steadily drifting lower and price actions continue to suggest that further decline is on the cards.
• The yellow metal is currently trading at $1284 per troy ounce and the next stop for the metal is at the yearly low around $1276 area.

Today’s price action in EUR/USD strongly suggests that the USD is likely to remain well-bid throughout the week, which increases the possibility of gold breaking into as low as $1275 per troy ounce this week.

Key supports:

• The very next support for the gold lies around $1275 area and the next support is around $1264 area.  A bounce back from $1275 area would see gold price retesting resistance around $1290 per troy ounce.