IronFX: Gold traded in a consolidative manner on Friday, staying between the support of 1262 (S1) and the resistance of 1268 (R1). The metal is still trading below the downside resistance line taken from back at the peak of the 26th of September, which keeps the door open for another negative leg.
A dip below 1262 (S1) is possible to initially aim for the 1257 (S2) support territory, where another break is possible to open the way for the key support of 1250 (S3).
As for the bigger picture, the close below 1300 on the 4th of October perhaps signaled a medium-term trend reversal. This is another reason I believe the precious metal is possible to turn down again in the foreseeable future.
Gold remains offered below $1278, the 200-day moving average. We could expect a minor correction to $1255/ 1250 (major 38.2% retracement on Dec 16th to Jun 5th rise). Clearing $1278 should pave the way for a rise to $1297 (minor 23.6% retrace).
• Support: 1262 (S1), 1257 (S2), 1250 (S3)
• Resistance: 1268 (R1), 1273 (R2), 1280 (R3)