Technical Update: Gold Heading For The Lows Of The Move?

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Gold futures were trading lower by $6 at $1169.20 in Friday's session. In Thursday's session, it breached the lower end of its five-day trading range ($1180), falling to $1172.40 before recovering to close at $1175.20.

There has been follow through to the downside in today's session that accelerated when the May unemployment numbers were released.

So far, it has reached $1162.10 before staging a rebound that is now approaching the $1170 level.

The current low marks the lowest level for the August contract since it bottomed on March 19 at $1160.40.

The 2 1/2-year-low for the contract stands at March 17 low ($1143.40).

The SPDR Gold Trust (ETF) (NYSE: GLD) was trading at $112.12, down $0.72.

The Market Vectors Gold Miners ETF (NYSE: GDX) was trading at $18.86, down $0.20.