Technicals - Gold - major support located at US$1180

The spot gold price originally generated a technical sell signal at US$1321 on 25/8/16 (VIEW LINK), resulting in the technical outlook turned negative. The 11/11/16 decline resulted in the gold price closing below further key technical support (at US$1227) which indicated the potential for a further minimum pullback to US$1200 - a level which was reached/exceeded last night. The chart below highlights that major support is now located at US$1180 - the low points reached in both mid-2013 and early 2014. The gold price technicals remain negative given there is no sign of base forming emerging. A re-entry technical buy signal will only be generated after technical base forming occurs.