Gold has been trading in a choppy mess as we can see in the 4H chart. But as we get into this week, we are seeing a bit of a bearish bias so get ready for a bearish attempt in the May 12th session.
The 4H gold chart shows a choppy drift downwards. The market in the short-term is neutral-bearish. Now in the very near-term it has been developing some bearish bias as price is starting to hold under the cluster of 200-, 100-, and 50-period simple moving averages. Furthermore, after the RSI tagged 30, it has remained under 60, which reflects maintenance of the bearish momentum.
Last week, we saw the a bullish reaction after the NFP release. However, during the May 11th session, we saw these gains reversed completed. We also saw the session wrap up with a bearish outside bar, which also suggests a pending bearish attempt for the May 12th session.
The pressure is thus on the 1170 low, with risk of extending lower towards the 1130-1140 lows of 2014 and 2015. Note that in the daily gold chart, we also have a bearish bias as price trades under the 200-, 100-, and 50-day SMAs, and as the RSI holds under 60 after tagging below 30.
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