Gold fell to fresh 5-year lows early on Wednesday, touching 1064.50, the lowest since February 2010. Technical signals both on the daily and weekly charts are bearish, giving little scope for a shift in the bias.
On the daily chart, the tenkan-sen and kijun-sen lines are negatively aligned and prices have fallen below the Ichimoku cloud, supporting a bearish bias.
The market remains strongly bearish below the key 1200 level and below the 61.8% Fibonacci retracement of the 681.43 – 1920.80 (Oct 2008 – Sept 2011 ) rise. This 61.8% Fibonacci lies at 1165.20 and is a strong barrier to the upside. Prices have scope to fall towards the 76.4% Fibonacci at 959.13.
Risk Warning: Forex, Commodities, Options and CFDs (OTC Trading) are leveraged products that carry a substantial risk of loss up to your invested capital and may not be suitable for everyone. Please ensure that you fully understand the risks involved and do not invest money you cannot afford to lose. Please refer to our full Risk Disclosure.