After breaking technical-chart support last week, gold seems to be fall further, with some market watchers suggesting a dip at $1,220 is possible as bearish technical charts and little positive news is available to offset the price-negative sentiment in gold.
Gold-price weakness accelerated last week following by the release of meeting minutes from the Federal Open Market Committee, which suggested that the Fed would like to scale back their bond-buying program sooner rather than later.
Thus pushed prices lower and selling on last Thursday took gold through technical-chart support at $1,250, which a lot analysts saw as important for the market to hold since it was the bottom of the current range.
From the technical charts, whether looking at daily or monthly charts, it were bearish for gold. The daily charts are suggesting an eventual test of the June low which comes in at $1,179 (which is $1,183.20 using a futures continuation chart) and perhaps it might fall to $1,160.
On the monthly charts gold is forming a triangle pattern, which is a continuation of the current trend by showing a bearish technical chart.
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