Technicals - gold - no sign of a turnaround / major support located at US$1105

The spot gold price originally generated a technical sell signal at US$1321 on 25/8/16, 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 flagged the next downward move in the gold price (refer to second chart below). The first chart highlights that major long-term support is now located at US$1105. The technical outlook remains negative given there is no sign of base forming emerging. A re-entry technical buy signal will only be generated after the required technical base forming occurs.