FX.co ★ Gold analysis for December 6, 2013

Gold prices are in their final stages of their decline before making a larger degree upward correction. Short term trend is down and we expect this final 5th wave to end near 1,200$. Prices are still inside the downward sloping channel and below the short term downward sloping trend line.

Short term resistance is found at 1,244$ and today's pivot is at 1,230$. Trading below the 1,230$ pivot will increase the chances of pushing to new lower lows towards 1,210$. Although trend is down, we expect this downward move to be the last wave of the entire decline that started at 1,360$.

Short term support is found at 1,200-1,190$. This decline from 1,360$ is now testing the upper channel boundaries. It is near its end but we cannot rule out that it will finally end near the lower boundaries of the channel on the daily chart near 1,180$. Bears should be very cautious and not let their positions run if prices break above 1,258$.