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Gold bounces from critical support

Tech analysis by Simon Kazinsky on 15:43 December 19, 2016 EST

After dropping like a stone for the past months against the all mighty US dollar the metal has gained so far almost $20/oz from its most recent low in Dec 15 at $1123.

An ounce of Gold costs on Monday $1139 and the move may be more than a dead cat bounce. A low may have been set as a weekly moving average that was hit this time last year setting a multi year low comes into action again as can be seen in the chart.

There is also a downward trendline joining previous highs in the vicinity that could also provide support just below the moving average if this gives way.

A weekly break below $1100/oz will give a great boost to bears.