Gold Daily Technical Outlook

Intraday bias in Gold remains neutral and some more consolidation might be seen above 1175.1 first. Nevertheless, recovery is expected to be limited by 1218.8 resistance and bring fall resumption. Below 1175.1 will target 1166 key support next. However, a break of 1218.8 will dampen our bearish view that gold has topped out in medium term and will turn focus back to 1266.5 high.

In the bigger picture, gold's rally from 1044.5 should have completed at 1266.5. More importantly, whole medium term rise from 681 might have finished with five waves up too, on bearish divergence condition in daily MACD. Sustained trading below 55 days EMA (now at 1203.2) will affirm this case and bring deep correction to 1044.5 cluster support (38.2% retracement of 681 to 1266.5 at 1042.8) at least.