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Gold attempts to recover from overnight losses
Gold sold off sharply overnight, with the price hitting $1325 for the first time this week. The sharp nature of that decline has now given way to a period of consolidation, which looks likely to provide a short-term retracement towards the upside.
With that in mind, the downtrend remains intact, yet there is a strong chance of a move back to the upside, in order to retrace the $1340-1324 sell-off. That being said, this short-term bearish trend would only be negated with a break back above $1340. Until then, a short-term bounce would be seen as a precursor to further losses, and a fall back below $1324.
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