Gold price remains vulnerable
XAU/USD has reached the target of the triangle which was breached on June 19 and recovered to the levels just below $1,300.
Gold has been staying below 200-day MA since Feb. 11, for the longest period since the bull market started in 2001. The precious metal is heading for the first annual drop in 13 years.
There’s a bearish butterfly on the H4 chart. There’s a downtrend in the short and medium term. Support lies at $1,267.5, $1,225, $1180 (June low), $1,150 (100-month MA) and $1,090. Above $1,300 the negative pressure will ease and gold will have a chance to recover to $1,450, though resistance at $1,320/40 (April lows) will likely provoke some selling. Also note that there’s a 38.2% retracement of the rally from 2001 through 2011 at $1,285.
Chart. Daily XAU/USD