Gold’s hourly chart shows a bear flag breakdown, a bearish continuation pattern, which is backed by the bearish cross of the 50- and 100-hour MA. The 50 is fast falling towards the 200-hour MA, which is bearish signal.
On the daily chart, the breakout witnessed last week has ended up creating another bearish lower high just above $1,300.
The price has also fallen back inside falling channel.
Lets seen if buyers step in around $1,277. The possibility of the metal defending that support or staging a strong bounce from that level is quite low. After all, risk-off is pushing JPY higher but is doing little good for the yellow metal.
Unless, risk appetite improves significantly, leading to dollar sell-off, gold prices could continue to lose altitude.
Bounce, if any, due to dollar weakness, needs to clear resistances at $1,285-$1,288 to alleviate immediate bearish pressures. Also, the 200-hour, currently flatlined at $1,295, could put brakes on a potential price bounce.
On the daily chart, the breakout witnessed last week has ended up creating another bearish lower high just above $1,300.
The price has also fallen back inside falling channel.
Lets seen if buyers step in around $1,277. The possibility of the metal defending that support or staging a strong bounce from that level is quite low. After all, risk-off is pushing JPY higher but is doing little good for the yellow metal.
Unless, risk appetite improves significantly, leading to dollar sell-off, gold prices could continue to lose altitude.
Bounce, if any, due to dollar weakness, needs to clear resistances at $1,285-$1,288 to alleviate immediate bearish pressures. Also, the 200-hour, currently flatlined at $1,295, could put brakes on a potential price bounce.