Gold Technical Analysis: Falls to over 1-week lows, further slide to $1260 area now looks a distinct possibility
|• The precious metal extended overnight post-FOMC rejection slide from the $1287-88 supply zone and remained under some heavy selling pressure for the second consecutive session on Thursday.
• The bearish momentum, also marking the third down day in the previous four, has now dragged the commodity to over one-week lows, around the $1270 region amid fading safe-haven demand.
• Meanwhile, the overnight slide confirmed a bearish break through an important $1278 horizontal support and hence, the ongoing downfall could further be attributed to some fresh technical selling.
• Oscillators on 4-hourly/daily charts maintained their bearish bias but are already pointing to slightly oversold conditions on the 1-hourly chart, warranting some consolidation/modest rebound.
• However, the set-up remains in favor of bearish traders and hence, any attempted recovery move might still be looked upon as a selling opportunity for an eventual slide to $1260 support area.
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