Is $1300 Gold Right Around the Corner?

The price of gold plummeted this week with losses of over 5% as investors jumped out of this once precious metal and into U.S. and Japanese stocks. If gold closes where it is currently trading at $1,363 on the spot market, it will represent a new low weekly close for the year. Such a close would indicate further downside pressure for this metal. Technically, we cannot rule out a test of the $1300 level.

If June gold extends this month’s decline, April’s low crossing at 1321.50 is the next downside target. Closes above the 20 day moving average crossing at 1440.00 are needed to confirm that a short term top has been posted.

Going into Fridays session first resistance was the 20 day moving average crossing at 1440.00. Second resistance is May’s high crossing at 1487.20. First support is Thursday’s low crossing at 1368.00. Second support is April’s low crossing at 1321.50.

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