December gold futures on Monday dipped to a fresh two-week low of $634.10 an ounce, amid weaker crude oil prices and a ceasefire agreement between Israel and Hezbollah. The bears have regained some fresh downside near-term technical momentum. The daily bar chart for December gold shows that a potentially bearish diamond pattern has formed. Diamond patterns usually form at market tops and are accompanied by choppy, up-and-down trading that forms the diamond.
The next near-term downside technical objective for the gold bears is solid chart support at the July low of $615.00 an ounce. A close below that price level would open the door to a challenge of major psychological support at $600.00 an ounce.
click the chart to enlarge
On the upside, near-term technical resistance is located at Monday’s high of $643.60 and then at $650.00. For the bulls to regain solid upside technical strength, they would have to produce a close above chart resistance at the August high of $668.20 an ounce.
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