Gold turned sideway after hitting 1211.65 last week. There seems to be some support from 1205.20 support level, which is close to 1200 psychological level. Oversold condition, as seen in daily MACD was also limiting downside momentum.
However, the recovery is so far limited below 1238.00 support turned resistance. Hence, there is no confirmation of near term bottoming yet. We’re viewing the fall from 1365.24 as a leg in the pattern from 2015 low at 1046.54. And further fall would be seen to 61.8% retracement of 1046.54 to 1375.15 at 1172.06 and possibly below.
Nonetheless, break of 1238.00 resistance will likely bring stronger rebound back to 55 day EMA (now at 1267.53) before staging another fall.
