Gold – Needs break above $1275

Gold’s repeated failure to hold gains above $1270 questions the strength of the rebound from Oct 7 low of $1241.5 and thus open doors for a fall back to key support level of $1253, which is 23.6% of 2011 high- 2015 low.

However, bullish invalidation is seen only below $1253 levels and selling interest is seen making a comeback below $1241.5 (Oct 7 low) in which case loses could be extended to $1220 levels.

Such a move cannot be ruled out given the fact that the metal usually drops in the run up to US elections.