Gold – losing height, H&S formation on daily chart

Resistance – $1255, $1270, $1283

Support – $1237, $1223, $1218

• Gold’s failure to sustain above $1260 and a fall back below falling trend line on daily chart has left the doors open for a drift lower to 50-DMA of $1237 levels.
  

• Fall back from NY session high kept the head and shoulder formation intact.
  

• On the higher side, prices need to breach $1255 in order to re-test $1263-1270 (previous day’s high).