The yellow metal is creating a downward correction after the strong rebound on $1,357 resistance level and is posting a bearish month. During last week, the price hit our recommended target at $1,300 and had an upward movement until the $1,314 barrier (see previous technical analysis here: Gold in a Correction Bearish Mode – Next Level to Watch $1,300). Our prediction is a further drop until the $1,275 support obstacle, which overlaps with the 100-day SMA.
Technically, on the daily timeframe, the indicators are endorsing the thought for bearish bias. The RSI indicator is ticking lower following the pullback on its mid-level, while the MACD oscillator slipped into the negative territory and lost its strength. Moreover, the three simple moving averages (50, 100 and 200) are turning to the downside confirming the downward attitude.