Gold May Fall Further – Keep an Eye on $1,280

Gold prices edged lower, floating near a three-week low $1,276 placed in the previous session. The firmer Greenback is making precious metals more expensive for buyers using other currencies. Which is why traders are moving their investments to the forex market despite a threat of slowdown in the economy.

A day before, we took a sell position below $1,280 to target $1,276.50 but unfortunately gold missed our take profit just by inches due to spread. Since the moment occurred overnight, we weren’t able to close the position.

Today, the technical side of the market is exhibiting a bit different view. Gold looks more bullish than bearish beneath strong support become resistance level of $1,280.

The RSI and Stochastics are in the oversold zone, as sellers are looking to trigger profit takings. A couple of doji patterns below $1,280 are also signaling a bullish bias.

The bullish breakout at $1,280 can lead gold prices towards $1,285 and I will be looking to take another sell position below $1,287 today.

Good luck!