Gold prices slid in the intraday levels to reach an important support at 1,207 that we alluded to in our last analyses, with prices now moving within a descending price channel that limited their previous short-term movements, After gold reached that critical support, it engaged in sideways trading, hinting at forming a negative technical pattern that is complimentary to the main downward short-term trend, the Symmetrical Triangle, as shown in the attached chart, with ongoing negative pressure from the SMA for the last 50 hours period, while relative power indicators have reached extremely overbought levels.

Therefore we expect more losses to come for the precious metal, especially if it breached the support of 1,207, targeting thereafter the support of 1,197 as a price target for that forming technical pattern.

Trend Bearish