On Tuesday, the yellow metal gold standstill in the absence of high impact economic events. Gold trading at $1,274, likely headed to the next support level of $1,240 in the upcoming weeks. There seems to be a problem, as the sellers have remained in power throughout.
Most of the technical indicators are suggesting a strong bearish bias of investors. Such as:
The 20, 25 and 50 periods moving averages are pushing gold lower while providing resistance at 1,288 an 1,280. If gold fails to get back over $1,280 in the next day or two, there is a high possibility of another big push down.
The heavy hands are the sellers, and till gold can close and stay over $1,300, it’s highly likely to continue trading the bearish trend.
Support and Resistance
Key Trading Level: 1276.86
Keep a close eye on 1,275 as the precious metal gold can stay bearish below and bullish above this level. On the lower side, gold may target 1,266. All the best!