Gold finds a buyer
The price has managed to regain some ground overnight, as the creation of a higher high points towards the possibility of some respite after an absolute rout in the past two weeks.
However, it is worth being wary of any short-term bounce within a very clear and consistent downtrend in play. With that in mind, there is a good chance the upside we are currently seeing represents a retracement of Friday’s sell-off.
As such, we would be looking for gold to turn lower at either the 61.8% ($1214) or 76.4% ($1218) retracements. Conversely, a closed hourly candle above $1223 would provide a more bullish view.