Gold broke support at USD 1244 after the release of the U.S. non farm payroll data. The MACD is showing an impressive new momentum low, suggesting that the correction could last a little bit longer. The 20 Day moving average rises at USD 1228, next support is 1218.5. A break out in Gold occurs when it moves above USD 1269; the Bull Market in Gold is over if it falls below USD 1150. To find a good risk reward here is difficult. I still believe in a break out to the upside but there is no reason to get overly bullish or bearish here. Having a look at the daily chart, we have a negative divergence developing on the MACD, but the long term trend is intact. There could be some back and forth action between USD 1217 & 1244 until Gold decides which way to go.
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