Gold Pauses to Digest its Steep Losses This Week

Gold (1143.80)

The yellow metal has pushed lower, near 10 year lows, after forming an Evening Star candlestick, which is a bearish reversal signal. Please see the above daily MT 4 chart.

Sellers are now looking to challenge 1131.10, with a daily close below this level targeting 1092.80. Should gold move higher then we need a close above 1154.80 to target the cluster area that runs from 1174 towards 1178.85.

Let’s look at the below 1 hour chart. We see gold bouncing off a resistance level near 1131.10. If this manages to hold today and we close higher, then the yellow metal has a chance for a corrective bounce. However, while below the 55 day moving average, gold remains bearish.