Originally published by AxiTrader
Gold has now collapsed more than $50 an ounce since the recent high and failure at long term trendline resistance at $1295 back in mid-April.
The overnight low was around $1235 but the current price of in the mid $1237 region is right on the uptrend support line from the late 2016 low in the $1120's. And that also means that prices have fallen down and through the 200-day moving average I highlighted in a note earlier this week.
This current level is just a few dollars above the 61.8% retracement level of 2016 - 2017 upmove.
But as I wrote earlier this week I always respect these levels and lines - unless or until they break - but if this level gives way a move back to $1220, perhaps $1198 is on the cards.
And here is how gold looks on the monthly charts. There could be a little more downside before a recovery.
Have a great day's trading.