Gold Weekly Technical Outlook

Gold' decline from 1377.5 continued last week and breached 61.8% retracement of 1045.4 to 1377.5 at 1172.3. At this point, we'd still expect strong support around 1172.3 to bring rebound. Break of 1197.2 should confirm short term bottoming on bullish convergence condition in 4 hours MACD. In that case, gold should target a test on 1243.2 support turned resistance first. Firm break there will target 1338.3 and above. However, sustained break of 1172.3 will bring retest of 1045.4 low