Gold slips lower once more
The swift drop in gold this morning clears the way for a potential test of the $1150 level, which still hovers in the background as a promising support level. Daily stochastics have yet to turn bearish, but the relative strength index has slipped lower again, indicating that buying momentum has evaporated. With the price now stuck below all three major moving averages I remain with the view that more downside is likely. A close above the $1200 level would be needed to even suggest that the bulls are back in command.