Gold drifting lower towards trendline support
Early gains from yesterday have eroded heavily for gold, with the market moving towards a crucial ascending trendline. This trendline has propped up the price over the past week and thus there is a good chance we could see any selling capped at this level.
Alongside this, we also have the $1271 support level, which could coincide to provide another bounce. Following the triangle breakout in late April, a bullish outlook came back into play once more and thus we look at this market with the view that the bullish medium-term picture will return eventually.
With that in mind, this current downside seems unlikely to last, with a break towards $1287 likely in the coming days. However, a closed hourly candle below $1263 would negate this bullish view.