Gold Gives up Gains, And Waiting For More Declines

The prices of the yellow metal declined significantly after it failed to stabilize above the pivotal resistance level published during all reports of the past week, located at 1903, confirming the breach of the 1880 support level, We reported that breaking 1880 puts the price under negative pressure, its target located around 1865 to witness a low around 1874.

On the technical side, and with careful consideration on the 240-minute chart, we find the 50-day moving average pressing the price from below, and this comes in conjunction with the stability of the RSI below its mid-line. From here, with steady intraday trading below 1885, and most importantly 1895, the bearish tendency is likely today, targeting 1860 first target, and breaking the mentioned level facilitates the task required to visit 1855, a next station that may extend later to visit 1840.

In general, we continue to suggest the bearish trend as long as trading is stable below 1903/1905 and its breach is capable of thwarting the continuation of the decline and gold recovering again with an official target of 1928/1929, 23.60% correction.

S1: 1879.00	R1: 1895.00
S2: 1855.00	R2: 1913.00
S3: 1837.00	R3: 1924.00