Gold’s near term down trend resumes today thanks to broad based strength in Dollar. The development also further solidify the case of medium term reversal. That is, rise from 1160.17 has completed at 1346.71, on bearish divergence condition in daily MACD.
Near term outlook will now stay bearish as long as 1280.85 support turned resistance holds. Gold is targeting 61.8% retracement of 1160.17 to 1346.17 at 1234.42 and below.
In the bigger picture, gold was once again rejected below key fibonacci level of 38.2% retracement of 1920.70 to 1046.37 at 1380.36. The developments keeps down trend from 1920.70 intact. It’s too early to declare resumption of the down trend. But reactions to 1160.17 support will be closely watched to assess the chance of breaking through 1046.37 low.