FxWirePro: Bears hamper gold’s recovery attempts – on the verge of making new 6-year lows

The precious metal has surpassed all major support levels where supply was seen more than demand and for now lingering support at around $1,071.43 levels after rejecting 1074.78.

If it does not mange to hold 1071.43 levels, then the test 1060 areas would be a certain event the weeks to come.

Today it has made an attempt of jump to clear 10DMA at 1074.78 (day high) but bears could not resist to hold these levels to push it southward at 1071.40 (spot) slipping below 10DMA again.

The precious metal has been losing its shine after tumbling consecutively from last couple of weeks but as stated in our earlier post after breaking all crucial support zones (1096, 1087 and 1070 levels), we are not seeing any sense of bouncing back.

RSI confirms bearish trend continuation: The pair at this psychological juncture testing supports, while RSI still evidences downward convergence with sharp declines both on weekly and daily charts (Currently, trending around 49.1758 while articulating), so this indicator justifies current prices dips.

Stochastic supports bearish momentum:  To substantiate these price slumps, slow stochastic curves view on weekly charts signifies to remain in sync with the standpoint offered by RSI. %D line crossover is maintaining even below 20 levels which is oversold zone bolsters more selling pressures, (Currently, %D line is at 18.6556 and %K at 19.8799 while articulating).

Hence, contemplating above technical indications, it is advisable to short rallies for targets of 1064.69 or even up to 1060.85 levels with strict stop loss of 1074.50 levels.