Gold prices dithered sharply in the intraday levels after sliding in the short term, searching for a bottom to bounce off it higher, while keeping up the main upward medium-term trend. Gold reached the support of 1,207.40 in its last fall, representing the ratio 38.2% of Fibonacci retracement levels for an ascending wave in the short term from (1,115.64 to 1,265.12), bouncing from it higher as it trades within a descending price channel as shown in the attached chart, with negative pressure from the SMA50.

Therefore we expect more losses to come for the precious metal, provided it breaches the support of 1,207.40, targeting the next support at 1,189.88, representing the ratio 50% of the same retracement levels mentioned earlier.

Trend Bearish