FX.co ★ Gold starts the week with new lows

Gold price remains under pressure making new lower lows. In a previous analysis back in early November we warned traders that Gold price was still vulnerable to a decline towards $1,750 and confirmation would come with a break below $1,850.

Gold price has broken below the weekly tenkan-sen and kijun-sen indicators. This price action implies that a test of cloud support and 38% Fibonacci retracement is in the cards. Price should continue lower towards $1,725-50 area where we find the first important support area. Gold price might bounce but we continue to expect lower prices. Longer-term is still considered bullish as price is above the weekly Kumo (cloud).