GOLD SHORT

The gold price continues to fall in the early New York session. During the previous session, the metal effectively rebounded by forming an inverse head and shoulder pattern. However, the metal has reversed dramatically from its early gains, indicating that bullish momentum is limited.

Key Indicators

• The metal broke below the $4,450 support level on the 1-hour timeframe, indicating potential continuation to the downside.

• No backtesting of the previous high has occurred. Bearish divergence was observed on the oscillator in the 4-hour timeframe.

Fundamental Context

Gold price recovered marginally after plunging to a new session low of $4,440. As of this writing, the metal is trading above $4,460. However, the overall trend is bearish following early strong selling pressure.