The upward attempt which Gold prices made yesterday was weak and had an overlapping corrective pattern. The upward move was not impulsive and prices fell back down easily towards 1,310. This sideways move makes us believe that the downward move from 1,360 is not over yet.
Prices have stopped below the 1,325$ resistance and moved back down below the 1,317 pivot point. This favors bearish positions and we have a short-term expectation of reaching 1,300-1,290, where the 61,8% Fibonacci retracement is.
An upward break above 1,325 could cancel this view, but for now we give more chances of seeing a new low rather than an upward move. The daily chart continues to favor the bearish Head-and-shoulders scenario with the first target within the 1,250-60 area. For this scenario to be invalidated, we need to see prices break above 1,360.
