Gold could retake highs of $1260
The rather ugly unwind in long gold positions goes on. Having being so heavily overbought, gold has now switched (at least on intraday charts) to being oversold.
As a result, we could see a bounce back towards $1220, at which point the situation should be reassessed.
If the price then turns lower once more, it is a sign that the 200-hour simple moving average at $1182 may be tested, and then on towards the rising hourly trendline at $1160.
A move back through the 50-hour SMA ($1232) is the key to any attempt at retaking the highs of last week around $1260.