Gold breaks down once more
Gold has seen a move lower from the 61.8% retracement overnight, in a move which follows on from the sell-off on Tuesday. Given that we have seen a break below yesterday’s $1337 swing low and the $1335 support level, there is reason to believe we will see further losses. This is irrespective of whether we see a bounce from here or not.
Ultimately, a bearish short-term view is in play unless we see an hourly candle back above $1347. Clearly, the first hurdle to the downside is the $1327 support level.