Gold Update : Chances for it to hit $633

Gold remains heavy following the recent rejection off channel resistance at 689.00.

The channel base at 633.00 marks the next objective and also key support.

Gold remains weak with momentum studies still in a hard down position.

This highlights the potential for further weakness in the metal.

The recent rejection off 689.00 also marked a rejection off a key channel top and this has opened the channel base which currently lies at 633.00.

The channel base also marks a key support zone and should this level break, scope would exist for a move towards 620.40, Jan 17 low and also open 602.20 which is the Jan 5 low.

Resistance is at 658.10, Mar 9 high ahead of 677.60, the Feb 238 high.