Gold’s drop to a low of $1181.70 yesterday pushed the daily RSI
into the oversold territory. The daily MACD
shows loss of bearish
momentum despite prices dropping to fresh multi-month low.
Hence, a corrective move to $1200 is likely.
On the downside, a strong support is seen directly at $1171.85 (61.8% of Nov 2015 low – Jul 2016 high).