Gold yesterday closed with a huge bearish engulfing candle on daily chart which clearly shows that bulls are losing grounds after Fed tapering decision. The precious metal slumped $30 per ounce on Thursday to $1237, however then retreated somewhat to close at $1243.

At the moment of writing in Asian session yellow metal is being traded at $1243. Resistance can be noted around $1248, $1253 and then $1255 these are 100 MA (H4) 55 MA (H4) and 76% fib levels respectively.

On downside, gold may find support at $1233 which is 200 MA at four-hour chart and 55 DMA ahead of $1230 that is a crucial 50% fib level of recent move. A break and daily close below $1230 will be very bearish in medium term and may threaten $1219. At the moment Commodity Channel Index (CCI) is already in oversold territory and Relative Strength Index (RSI) is standing just above the oversold zone on four-hour chart. MACD has also started showing some signs of improvement, all these factors point out that a bullish reversal might be in play very soon. Furthermore, the metal is about to complete its downward wave because swing low of previous wave is sitting around $1231.

 Today some important economic reports about the US economy are due in the US session:

• Employment Cost Index (Q4)
• Personal Income (MoM) for December
• Consumer Consumption Reports for December (YoY) & (MoM)
• Personal Spending (Dec)
• Chicago Purchasing Managers Index (Jan)
• Reuters Michigan Consumer Sentiment Index (Jan)

Earlier a commerce department report showed yesterday that the US economy grew at 3.2% last year which was in accordance with median projection by different analysts. The report also revealed an increase in personal consumption expenditures by 1.1% which was the highest level in more than three years, figures show that economy has started gearing up.

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