Gold trading below daily moving averages
Gold is in a downtrend as it is forming a ‘lower top lower bottom’ pattern and is trading below the daily moving averages. In the short term, it is trading in a downward sloping channel. In Friday’s trading session, it found support at the lower end of the channel and lower Bollinger band and bounced back. Therefore, the swing low of 1211 will be a crucial support in the near term. If it closes below 1211, then it can drift lower towards 1200-1175. However, if yellow metal holds above the recent low of 1211 then it can bounce back towards 1248-1262. Overall, the trend remains bearish as long as it does not close above 40- DEMA which is currently pegged at 1262. The daily momentum indicator is trading bearish.