Spot gold prices continue lower this morning. Last Thursday’s weakness and close beneath a 6-month trendline ($908) precipitated additional selling pressure that has continued into this morning’s reaction low at 873.00 – so far. Let’s notice that the 200-day moving average now is slightly rising at $860.75, with the daily RSI pointed down and making new lows for this move. The juxtaposition of the declining RSI with the falling price structure argues for still-lower prices that likely will test the 200 DMA in the upcoming hours. Let’s also notice that $845 represents the 50% support area of the entire upmove from the October low ($680.75) to the February high ($1007.20), as well as the lower channel line off of the February high. Both also could be “technical magnets” for a forthcoming significant low in spot gold prices and the corresponding SPDR Gold Shares ETF (NYSE: GLD).
