- Gold is on track to post biggest monthly loss in three years.
- An impending bear cross favors a drop to $1,445.
Gold is currently trading at $1,455 per Oz, representing a 3.77% drop on the monthly opening price of $1,513.
If prices remain unchanged or drop further till NY close, the resulting monthly loss of 3.77% or higher would be the biggest since November 2016. Back then, the safe-haven yellow metal had dropped by 8.11%.
The probability of gold falling to $1,445 is high as technical studies are biased bearish. For instance, the 50- and 100-day moving averages are about to produce a bearish crossover. The price chart shows a lower high, lower low setup.
Further, the 14-day relative strength index is reporting bearish conditions with a below-50 print.
The outlook would turn bullish if prices rise above the Nov. 20 high of $1,479, invalidating the lower highs setup. That, move, however, is unlikely to happen on Friday.
Daily chart
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Trend: Bearish
Technical levels
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