GOLD

Unless gold prices recover above 1,130 levels in the following weeks, probability of a sell-off towards 1,000 levels will increase. In mid-July gold price broke below the support range between 1,130-1,150. Since then the rebound has been weak and price failed to recover even above 1,110 levels. Lower boundaries are considered to be negative extremes and upper boundaries; positive extremes in terms of sentiment. If price is breaking below the lower boundary, that signals extreme weakness for the analyzed instrument. Downtrend remains intact for gold. Strong resistance stands at 1,130 levels.