Gold Technical Analysis: Off 3.5-month lows, but bias remains bearish

Omkar Godbole FXStreet Contributor

Gold is currently trading at $1,277 per Oz, having a low of $1,273 yesterday - a level last seen on Dec. 27.

The bounce from 3.5-month lows may be extended further to $1,281 (April 4 low), as the 4-hour chart relative strength index (RSI) is reporting oversold conditions with a below-30 reading at press time.

The recovery, however, will likely be transient, as the yellow metal confirmed a descending triangle breakdown with a close at $1,276 yesterday. The breakdown has reinforced the bearish view put forward by the lower highs pattern and the downward sloping 10-day moving average.

As a result, gold appears on track to test support at $1,262 (trendline connecting August and November lows).

Daily chart

Trend: Bearish

XAU/USD

Overview
Today last price	1277.1
Today Daily Change	-1.17
Today Daily Change %	-0.09
Today daily open	1278.27

Trends
Daily SMA20	1298.39
Daily SMA50	1305.35
Daily SMA100	1288.97
Daily SMA200	1248.32

Levels
Previous Daily High	1288.95
Previous Daily Low	1273.05
Previous Weekly High	1310.7
Previous Weekly Low	1288.7
Previous Monthly High	1327.8
Previous Monthly Low	1280.1
Daily Fibonacci 38.2%	1279.12
Daily Fibonacci 61.8%	1282.88
Daily Pivot Point S1	1271.23
Daily Pivot Point S2	1264.19
Daily Pivot Point S3	1255.33
Daily Pivot Point R1	1287.13
Daily Pivot Point R2	1295.99
Daily Pivot Point R3	1303.03

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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