Gold Falls Sharply Focusing on the 1522-1530 Support Area

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XAU/USD 4H Chart 10:10AM EDT 6/22/2012

After the double top spotted in the previous update on gold, it has slid sharply, especially when the prospect of QE was put aside, and the FOMC focused on extending Operation Twist.

The 4H chart shows the market also pushing below a rising trendline. The RSI dipped below 30 and shows bearish momentum. Now, the market is focused on the next key support area, which is better seen in the weekly chart below.

This chart shows range support in the 1522-1530 area. A break below this opens up the next support pivots near 1477 and 1461.70, which represents support during the April through June 2011 consolidation.

Fan Yang CMT is a forex trader, analyst, educator and Chief Technical Strategist for FXTimes - provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.

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