This is what has been said on Gold yesterday : “Gold finally lacked strength to break above 1285$ and posted a low at 1255$ before finding support on it. The bounce remains contained and weak so far we can believe that a bearish flag formation is developing right now. In case the market should prove this pattern to be right we could see the price of the precious metal dropping back to 1238$ support. To the upside, the major resistance the price will find will be at 1285$, any break above the latest could provide more upside potential to 1305$. Our bias for the day is neutral.”

The precious metal has been trading mostly sideways for the last couple of days, gold looks range bound between 1255$ and 1285$ mostly. For today the picture looks bearish with a target set at 1255$ however we’ll prefer to stay out of this trade as playing the range is not appealing. A range breakout would make things really interesting and open the way for a nice and sustained continuation move. Our stance for the day is therefore neutral.