Gold set to continue to decline
The decline of the commodity price continues, as expected. The bullion is reaching for the 1,270 mark, which it will most likely reach during Tuesday’s trading session.
However, just above that level the support of the 200-hour SMA was located at the 1,271 level on Tuesday morning. In addition, it could be observed that the SMA is not likely to move, as it had set a horizontal direction.
It can be expected that the bullion will retreat down to this support level. However, the afterwards direction is likely going to be dictated by political events and this weeks scheduled events like the release of the FOMC meeting minutes.
However, just above that level the support of the 200-hour SMA was located at the 1,271 level on Tuesday morning. In addition, it could be observed that the SMA is not likely to move, as it had set a horizontal direction.
It can be expected that the bullion will retreat down to this support level. However, the afterwards direction is likely going to be dictated by political events and this weeks scheduled events like the release of the FOMC meeting minutes.
However, we also have spotted short term descending channel, which is not shown on the chart. Most likely they will be added in an idea in the near future.