FX.co ★ Gold intraday technical levels and trading recommendations for August 6, 2013

Supply Levels: 1,340.20, 1,370.40, and 1,423.30.

Demand Levels: 1,282.00, 1,266.00, 1,255.10 and 1,209.

Bullish breakout above previous congestion zone extending between 1,265-1,298 took place on Monday, the bullish momentum was confirmed with Friday's price action (bullish hammer). However, lack of bullish steam is still apparent on the daily chart after hiting 1,347.8.

Today the metal is expressing a strong dip down below 1,282.95 (the recent bottom) which is manifest on the 4H chart. This threatens the bullish breakout mentioned above.

A bullish position was suggested at retesting of 1,285 with SL located below 1,260, our position is being triggered this week once again. we need to see 4H closure again above 1,282.

Fundamentally, Gold fell to more than 1% during the trading day of Tuesday, closing below $1,300, as the strong global economic data led to a drop in demand as a safe haven, while the rate of demand depends on the part of consumers in India and China.