Downtrend in metals continue; silver drops below earlier intermediate bottom;gold may rally

摘要

Gold is very close to its earlier intermediate bottom of 11,155 and a close below this level will result in the major trend turning down. On the dollar chart, gold has already dropped below its earlier intermediate bottom and is in a major downtrend. However, here it is now at the important support from the Gann Fan line and if an intermediate bottom is formed here, it could again see a level of 12,500-13,000. Traders should look to cover their shorts at this support level. On the weekly chart, gold has already dropped below the descending trendline indicating weakness in the intermediate trend turns up here, a lower intermediate top in the next intermediate rise will confirm more weakness ahead.