Gold fell to 15-week low
XAU/USD fell by about 270 pips yesterday sliding to $1,260.8 (61.8% Fibo of the advance from December to March). On the weekly chart the metal price recoiled down from the heavy bearish Ichimoku Cloud. Gold has breached the symmetric triangle formation and theoretically target now lies lower, in the $1,230 area (76.4% Fibo).
XAU/USD is surely oversold now. Resistance is at the previous support: $1,269, $1,278 and 1,285.8. Support is at $1,250.
Gold fell to the lowest level in more than 15 weeks as US economic data that beat estimates backed the case for the Fed to keep on reducing monetary stimulus, while demand in China showed signs of waning.
Chart. Daily XAU/USD