Gold may be primed for a bounce if markets come under fire

Commodity Analysis Spot Gold XAUUSD

Time Frame : One Hour Chart

Spot Gold XAUUSD

Gold has come under selling pressure the last few days as longer term buyers lock in some gains as risk goes back into equities. We see the potential for a bounce (local gold stocks seem to feel the same with some key goldies holding up well) and will be happy to buy off a higher low once the trend down is broken. The key level is around 1500 (on the CFD…pic below) so if this breaks, we expect to see a short squeeze and push higher. There is the potential that the ECB does not meet the stimulus expectations that is baked into the market and buyers then run for the door…we will see.

Commodity : Spot Gold

Current Price : 1490

Status : On watch for a potential break higher off support