The yellow metal extended gains against the US Dollar on Monday, thus in total losing 2.00% since mid-Friday. This was caused primarily by the stronger US Dollar which gained on the growing crisis in Turkey. As a result, Gold was trading at a new 17-month low near 1,195.00 this morning, thus breaching the prevailing symmetrical triangle to the downside.
The pair is clearly oversold now. This should increase upside risks, as bulls would want to gain on this sudden daily plunge. Upside potential is apparent until a resistance cluster set by the 55-, 100– and 200-hour SMAs circa 1,210.00. In the unlikely event of a fall, Gold should target the monthly S2 at 1,180.00.
