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  • Gold prints lowest level since Feb. 5, having dropped for a third straight day on Thursday. 
  • The weekly candle has neutralized the broader bullish outlook. 
  • A minor corrective bounce may be seen as intraday charts are reporting bullish divergences.

Gold is on the offer for the fourth straight day. 

The yellow metal is currently trading at $1,562 per Oz, representing a 0.90% drop on the day, having hit a low of $1,551 a few minutes before press time. 

That was the lowest level since Feb. 5. Prices dropped 3.5%, 0.93% and 1.82% on Thursday, Wednesday and Tuesday, respectively. 

Focus on the weekly candle

With a drop from $1,704 to $1,551, the yellow metal has engulfed the price action seen in the previous four weeks. 

The big bearish engulfing candle suggests the rally from the August 2018 low of $1,1160 has run out of steam. The metal could consolidate with a negative bias in the short-term. 

Acceptance under the immediate support at $1,557 (September 2019 high) could cause more sellers to join the market, leading to deeper declines toward $1,500.

On the higher side, consecutive daily closes above $1,600 are needed to revive the immediate bullish view. 

At press time, the hourly chart is reporting a bullish divergence of the RSI and the MACD histogram. As a result, the metal could recover to $1,580. 

Weekly chart

Hourly chart

Trend: Neutral

Technical levels

 

Expert score

5

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