Gold slumps to year to date low. Gold tumbled to trade at four-month low at 1,131, as confirmation that the US Fed would raise interest rate this year, pressured on the precious bullion to the downside. Slow but consecutive downside actions has been building on for the precious metal as candles is still inside the bearish channel on chart the weekly chart. Supported by the bearish motion, price is within striking distance of the 0.00% Fibonacci Retracement mark, further keeping the negative scenario valid.On such backdrop, gold is likely to continue falling.
Gold continued its steady decline on Friday one day after touching down to 2015 yearly lows. Plummeted to 1,131, its lowest level in more than four months, price has breached past the 0.00% Fibonacci Retracement mark on the daily chart. Negotiating the key support at 1,126 on the daily chart, arguments are exchanged for the precious metal to closed lower in the week ahead. Hence, we’ll be observing on the strong support around 1,126 to bring about further downside movement. On the contrary, a break above 1,148 would probably extend a bounce upward for gold.
Supporting well below the downward sloping trend line on the H4 chart, momentum for the precious metal is printing in the red with candles projecting well under the 20, 55 & 200 MA lines. Struggling on the lower bound near the -27.2% Fibonacci Retracement markt, support to the metal should continue to see muted interest. In the long term picture, Gold is in a consolidation pattern with no change in view for the near term.