FX.co ★ Technical analysis of gold for February 21, 2014

In Thursday's trading session gold dropped on Fed's further QE tapering decision. The minutes of the FOMC policy meeting indicated that the Fed will continue its tapering program unless there is a change in the economic outlook, and profit taking activity weakentd the gold price. In yesterday's trading session gold exactly took the support of 50.0 fib level. Now gold is trading in a range of 38.2-50.0 fib levels, $ 1,336-$1,307. Either side breakout gives a way for further move. RSI favour bears in the daily and hourly charts. In yesterday's trading session the price came out of the 3-day trading range and made a high at the level of 1324.6.

Weakness still exists in the daily and hourly charts. We recommend selling on any upmove until the price moves above the level of $1,336.0. If the price breaks yesterday's low of $1,307.0, a further fall is expected in coming days towards $1,300.0, $1,290.0, $1,284.0, and $1,274.0. If trades are above $1,325, next targets are at $1,336.0.

Intraday -

S1 $1,316.5 R1 $1,325.0

S2 $1,307.0 R2 $1,332.0

Positional-

S1 $1,307.0 R1 $1,325.0

S2 $1,300.0 R1 $1,336.0