Sell gold if it touches $1,300-05 an ounce

Comex gold futures ended lower on Thursday as its haven appeal dimmed on signs of easing tensions in Ukraine. A softer dollar and renewed tensions in Ukraine helped arrest the previous day’s fall. Markets are awaiting a news conference by European Central Bank President Mario Draghi after the central bank left interest rates unchanged.

Comex gold futures fell lower as expected but once again hit out stop loss before doing so. Gold futures continues to be quite volatile with the overall bias still weak. Typically, stops tend to get triggered on both sides during the volatile period. Resistances will be seen strongly around $1,310-15 levels again.

Prevailing negative indications suggest that prices could find it difficult to cross $1,315 and while this level remains undisturbed, a down move to $1,270 followed by $1,245 levels looks likely. Minor support is at $1,270-72 levels. Once below $1,272, prices could fall further accelerate towards $1,245 or even lower to $1,225. Only a move above $1,332 could cause doubts over our bearish view.

From the peak of $1,920 a corrective decline in the form of “A-B-C” is already over at $1,181 and a new impulse has begun. Confirmation of such an impulse will be seen above $1,445.

Fall below $1,250 could force us to abandon this scenario and look at a bearish one targeting $1,095. We will now wait for a confirmation for a fall below $1,250. RSI is in the neutral zone now indicating that it is neither oversold nor overbought.

The averages in MACD are below the zero line of the indicator hinting at a bearish reversal. Only a cross over above the zero line could hint at a bullish reversal again.

Therefore, immediately, one can look to sell gold in the $1,300-05 with a stop loss at $1,317 targeting $1,270 followed by $1,245.

Supports are at $1,275, 1,245 and 1,225. Resistances are at $1,310, 1,330 and 1,345.

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