- Gold’s break back below the 7 DMA at $1,282, which had been shaping the price lower, suggests a return of short-term downside pressure.
- The stochastics, MACD and momentum have all turned lower, signalling renewed downside strength.
- The BBs are diverging strongly so further consolidation is likely.
- Gold has broken lower from consolidation between the 7 DMA and the September low at $1,291. This sign of renewed selling pressure has returned us to a neutral-negative stance.
- A break of support from the August low at $1,272 would confirm renewed selling strength; we would then look to turn negative and cite support at $1,268 and $1,261 as our next downside targets.