More slumps likely as bears break major support at 1208 & 1200 marks after crossover on SMAs.
Both leading oscillators on weekly and monthly terms signal intensified selling momentum. On weekly plotting, you see the clear downward convergence of the leading indicators to the price dips, trending below 37 levels, while curves reached oversold zone but no traces of buying interests. While the same leading indicators on monthly plotting signal extreme pressures.
On weekly charts, 7SMA crosses below 21SMA and likely to extend which is again a signal, while 7EMA is likely to crosses below 21EMA that could drag gold prices lower.
On monthly plotting, occurred at peaks (1315.55 levels) of the intermediary trend.
While on weekly term evidences crossover that is likely to drag prices down further.
The inference: For now, this week the bulls began with the attempts to reclaim gains, but does it seem like bottoming out, is it really a bottoming out from 4-months’ lows (see monthly charts)? This has quite been a million dollar puzzle, we advise don’t jack up fresh longs on investment grounds as we don’t have confirmation on monthly terms, instead, patterns and indications are popping (see for and convergence by leading indicators on monthly terms).
Please be noted that the price of precious yellow metal has always been US rates sensitive commodity. And Fed is most likely to hike in this December meeting.
Hence, we encourage fresh shorts using ongoing rallies via contracts of mid-month expiries for southward targets of 1168 levels with a strict stop loss of 1208 levels.