Gold has remained below the key psychological level of 1200 since the end of June. Prices are challenging the 61.8% Fibonacci retracement of the rise from the 2008 low (681.43) to the 2011 high (1920.80). This was a record high and since then, prices have been falling and making lower peaks.
Looking at the weekly chart, the outlook is bearish especially after the 50 and 100-week moving averages crossed below the 200-week moving average. Also the MACD is in negative territory, giving a bearish signal.
A further decline from current levels would lead to a retest of the July low of 1071.19 and a break below this level would strengthen the downtrend. As long as the market remains below 1200, the bearish bias will hold.
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