Gold’s downside resumed yesterday and hits as low as 1204.58 so far. 2017 low at 1205.02 is breached. There is no sign of bottoming yet even though it’s facing 1200 psychological support. And, near term outlook will stay bearish as long as 1235.24 resistance holds.
We’d expect current down trend to continue to 61.8% retracement of 1046.54 to 1375.15 at 1172.07. Based on oversold condition in weekly MACD and RSI, gold could be contained there in first attempt. However, sustained break of this fibonacci level will pave the way to 1046.54/1122.81 support zone.
