Gold tumbles as bearish pressure mounts

Christina Parthenidou XM

Overview: Gold is testing its 200-day SMA after two months of consolidation, having failed to revive bullish momentum above 5,000. As the precious metal completes its third negative month, down almost 20% from all-time highs, more losses could emerge in the short term.

Momentum: The RSI is below 50, the stochastic is pivoting south, and the MACD is strengthening its negative momentum below its red signal line, suggesting selling interest may dominate.

Bearish scenario: A decisive close below 4,350 could squeeze the price toward 4,190. Another failure there may open the door to the 4,000 level.

Risk: A bounce back above 4,500 may boost buying interest toward 4,670.

Author

Christina Parthenidou

Christina joined Trading Point in May 2017. She holds a master degree in Economics and Business from the Erasmus University Rotterdam with a specialization in International economics.

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