Gold edged lower on commodities sell-off. Gold dropped on Monday, falling to the low at 1,086, as the renewing U.S. dollar strength and commodity sector rout had the yellow metal declining. Losing close to 7 percent in July, Gold is now in its longest retreat last observed in 1999. Closed down to 1,087 for the day, gold prices are being pressured as shoots above 1,100 level continue to have price falling thereafter. Therefore, it looks likely that the bearish trend will remain unless price breach the 1,100 level and holds above it.
Gold resumed its downward trend overnight, falling over $12 to the low of 1,086, as weak oil and base metals had the precious complex edging lower in follow through pressure. Grounding its way up to the high at 1,098 during Asia setting, Gold fell through 1,090 level, down to the session low at 1,086 as heavy selling pressure in recent weeks continue to have prices failing at the 1,100 resistance. Stayed net-short between the 0.00% & 23.60% Fibonacci Retracement mark, technical momentum continues to provide negative signals. In acknowledgement of that, candles have moved firmly below the 20 & 55 MA too. A bearish trend is in expectations in the upcoming period, with price targeting 1,078 as the next support station.
Brought to the days low at 1,086, the yellow metal is holding below the 20 & 55 EMA that keeps forming good resistance barrier as shown on the H1 chart. Holding below the 1,100 level on the intra-day basis, technical momentum is protecting the suggested bearish trend scenario, which may see the continuation conditions of price targeting the next support level at 1,078 . Expected trading range for today is between 1,078 support and 1,088 resistance.