The price action in the precious metal does not show any characteristic of an impulsive move. Gold has reached 1,330 resistance and got rejected yesterday. Prices have moved upwards in an overlapping price structure, and therefore, we see this upward move as a corrective pattern that when ends more steep downside pressures will push prices to new lows.

The sideways consolidation continues and soon it will be over. As soon as prices break above or below this triangle, we will have a new trend. Taking into consideration the longer term downward sloping red trendline at 1,330; we believe it is more possible to see support levels failed and the precious metal reaching 1,300 once again.

Support is found at 1,313, 1,300, 1,290, 1,270. We will sell on signs of weakness. If 1,270 is broken, then we confirm downtrend with 1,150 as a target. Resistance is found at 1,330, 1,350, 1,375, 1,400. Breaking above 1,330 will push prices towards 1,360-70, where the next important resistance is. Breaking upwards will increase the chances of reaching 1,400. Until then we remain neutral and with a small downward bias.