FX.co ★ Gold Elliott wave analysis for October 10, 2013

Gold has broken the sideways triangle downwards and fell below 1,300 reaching the 1,290 support. Now it is trading near 1,304, prices are expected to continue to move lower as resistance at 1,330 was rejected and we expect the precious metal to continue falling.

Short-term support is found at 1,290,1,280, 1,270. The 1,270 price level is the most important one as it also is the neckline of the Head-and-Shoulders pattern that is being formed. Breaking below that level will open the way towards 1,200-1,150. Short-term resistance is found at 1,318 and 1,325.

Our view remains bearish as long as prices in the daily chart continue to trade below the downward sloping trendline. That resistance line is now found at 1,328. We anticipate that soon prices will make a big downward move that will break support levels.