Gold fell 1.49 percent yesterday – the biggest single-day drop since Mar. 1 – bolstering the bearish view put forward by the inside-day bearish reversal confirmation witnessed over the previous two trading days.
The bearish crossover of the 5- and 10-day moving averages (MAs) and the 5- and 50-day MAs also indicates the path of least resistance is to the downside. What’s more, the 14-day relative strength index (RSI) is reporting bearish conditions with a below-50 print.
The yellow metal, therefore, could drop to the 100-day MA support at $1,279.78 before the NY close. As of writing, gold is trading at $1,291 per Oz.
Daily chart
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Trend: Bearish
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