After an impressive rally from early July through early September gold has spent the last month in a downtrend. After this morning's U.S. September non-farm payrolls report gold is tantalizingly close to a crucial area of support:

Gold (Daily - 1 Year)

The US$1260 level has been a critical support/resistance level for the last several years (just look at how many times this level served as support or resistance in just the last year). If the breakout that we had on the monthly time frame at the end of August is for real then it's unlikely that gold will fall much below $1260, and certainly not below the rising 200-day moving average (red line currently at $1250).

I believe gold is fast approaching a critical moment that will result in either a tremendous buying opportunity OR a breach of support that will make the late-August/early September surge look like a failed breakout on weekly and monthly charts. 

DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on for important risk disclosures. It’s your money and your responsibility.