Gold prices kept falling in the intraday levels and short term trading, while settling above the resistance of 1,089.88, which represents the ratio 50% of Fibonacci retracement levels for an ascending wave in the short term (from 1,015.64 to 1,164.12), with ongoing negative pressure from the SMA50, while bouncing off in the intraday levels today following an influx of positive signals from relative power indicators after they reached extremely oversold levels, with the metal trying to vent off that oversold saturation.

Therefore we reaffirm our negative outlook for the precious metal, expecting more losses if the resistance of 1,089.88 holds its ground, targeting thereafter the support of 1,072.36, which represents the ratio 61.8% of the same retracement levels mentioned earlier.

Trend Bearish