Gold Technical Analysis: Slides closer to YTD lows, confirms a near-term bearish break down
|• The precious metal extended its recent sharp retracement slide from the $1310-11 supply zone and tumbled to near 2-1/2 month lows during the early North-American session on Tuesday.
• Acceptance below 100-day SMA - for the first time since mid-Nov. 2018, was seen as a key trigger for bearish traders and prompted aggressive technical selling amid the prevalent risk-on mood.
• Bearish technical indicators on the daily chart support prospects for a further near-term depreciating move, albeit slightly oversold conditions on hourly charts warrant some caution.
• However, any attempted bounce might now be seen as a selling opportunity for an immediate downside target of $1269-68 before the commodity eventually drops to test the $1260 support area.
Gold daily chart
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