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  • Bearish pressure remains unabated through the mid-European session on Monday.
  • Sustained weakness below $1480 level will confirm a near-term bearish breakdown.

Gold extended its steady intraday decline through the mid-European session and dropped to fresh monthly lows, around the $1480 region in the last hour. The downtick dragged the commodity back below the 23.6% Fibo. level of the $1266-$1557 up-move and closer to important horizontal support near the $1480 region.
 
The mentioned support marks key neck-line support of a bearish head & shoulders pattern formation on the daily chart, which if broken will now be seen as a key trigger for bearish traders and set the stage for an extension of the recent corrective slide from multi-year tops, towards testing the $1450-47 support zone.
 
The later marks a previous strong resistance and also coincides with 38.2% Fibo. level. Hence, the mentioned support should help limit any further downside ahead of this week’s important release of the closely watched US monthly jobs report and a fresh round of high-level US-China trade negotiations.
 
On the flip side, the 23.6% Fibo. level, around the $1490 region, closely followed by the key $1500 psychological mark now seems to act as immediate resistance levels, above which the commodity is likely to head back towards $1510 intermediate resistance en-route the shoulder resistance near the $1522 region.

Gold daily chart

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