Gold continued declining in today’s trading, retracing more than 50% of the May 9 to June 6 upleg while extending the downtrend that started after the first week of June. Today’s down movement has led the precious metal to fall to the more than three-week low of 1249.13.
The short-term sentiment as indicated by the RSI is negative as the indicator is in bearish territory below the 50 neutral-perceived threshold at 43. Moreover, RSI is currently downward sloping.
The 50% Fibonacci retracement level (May 9 – June 6 upleg) at 1254.92 comes into focus as an immediate intra-day resistance point. This level was briefly violated earlier in the day. If the price moves higher, the 50-day moving average (MA), currently at 1259.97, is likely to act as a barrier to the upside as well.
On the downside, the 61.8% Fibonacci mark at 1245.27 could offer support. The area around this point has been fairly congested in the recent past and could hold some significance. Should the price head lower, the 200-day MA at 1238.74 might provide additional support.
Despite the recent down movement, the medium-term picture is currently looking neutral to bullish with the precious metal being in an overall uptrend since the start of the year.
Overall, the short-term outlook is bearish and the medium-term is neutral to bullish.
