Gold is Vulnerable Following Sell-Off,

Gold is Vulnerable Following Sell-Off, Resistance 654.50. Gold has Sold off Fairly aggressively over the past 48 hours defining a key resistance at 676.35, July 17 High. The decline has resulted in a test of trendline support at 627.25 which if breached would pave the way for deeper losses towards 620.70 initially, the July 10 lows and 609.92, the 50% retracement of the 543.50 to 676.35 rally.

Note too that 625.60 marks the 30% retracement of the 543.50 to 676.35 rally therefore highlighting the importance of the 625.60 to 627.25 area as an important support level.

If the move lower over the past few days is corrective, then gold wuld be expected to find support around the 626.00 area.

On the topside, initial resistance is located at 654.50, July 18 high where a break is required to once again expose 676.35 and potentially higher.

Gold is Beginning to look more vulnerable following the recent sell-off. 654.50 marks resistance.