Gold managed to break above resistance levels yesterday and reached our important resistance level of 1,320 but it did not manage to overcome it. This is the most important price area for determination of the immediate trend. We remain in the longer-term bearish with short-term target at 1,255 and longer-term target at a new low below 1,180. Gold is trading near resistance levels and a break below the short-term support at 1,303 could open the way to an accelerated downward move to test 1,270 and 1,255.

The daily longer-term downward sloping channel puts a lot of pressure on Gold and that is why we believe 1,260-55 is going to be tested. The decline may not have an impulsive form yet, but at least it clearly portrays that the trend is downward with lower lows and lower highs. We remain bearish biased expecting to see a break of the recent lows at 1,270. Today, we are bearish if the price breaks below 1,303 and will close all short positions if 1,326 is taken out.