Gold prices fell for the third day in a row in the intraday levels after the important resistance of 1,263.00 held on, hinting at forming a negative pattern, the Head and Shoulders pattern as shown in the attached chart, while leaning on the support of the SMA for the last 50 days period, with an influx of negative signals from relative power indicators, coupled with the dominance of the main upward medium-term trend.

Therefore we expect more losses to come for the precious metal, especially if it breaches the support of the SMA, targeting the support of 1,214.00, which coincides with leaning on the neck line of that negative pattern forming currently.

Trend Bearish