Gold Breaches 1,400, Momentum Shifted to the Downside

Gold started the week lower breaking the 1,400 level after better NFP numbers last Friday added to doubts that the FED will cut interest rates aggressively stopped gold from taking advantage of global economy slowdown.

Gold gives up over 11 dollars from the daily high at 1,407 piercing the 1,400 mark. The low for the day was at 1,392.65 and the high at 1,407.51. The main trend is still bullish but the short term momentum has shifted to the downside. The immediate support for the yellow metal stands at $1,386 the low from July 5th while more solid support can be found at 1,357 the low from June 20th. On the upside resistance would be met at 1,407 the today’s high and 1,410 the 100 hour moving average. Traders must be cautious on gold at current level as the volatility is very high. New long positions only if the precious metal closes convincingly above 1,410.Don’t miss a beat! Follow us on Twitter.