Gold could see further downside
Gold sold off nicely yesterday, as we continue to see it retrace off the back of a rally into $1357 resistance. This is expected to persist, with the market yet to retrace 50%. There is a strong chance we could see the price fall into the 61.8% region at $1328.
That being said, given the stretched nature of this market, there is also a chance we could see the price rally in the short term, which could provide a shorting opportunity, as long as we do not see a push back above $1349. However, this sell-off is seen as a short-term retracement, with a break higher expected in the medium term.