Gold extended downside movement on Wednesday, dragging the price of precious metal to less than $1310 an ounce following the emergence of two bearish pin bars around the major resistance level. The short term sentiment remains bearish due Lower High in the recent upside rally.
As of this writing, the precious metal is being traded around $1307 an ounce. A hurdle may be noted around $1312, the 38.2% fib level ahead of $1322, the high of the bearish pin bar which emerged on Friday and then $1342, the 23.6% fib level.
On the downside, the metal is expected to find a huge support near $1300, the confluence of 100 Daily Simple Moving Average (DSMA), 55 DSMA and psychological number ahead of $1287, the 50% fib level and then $1262, the 61.8% fib level. The sentiment will remain bearish in the short term as far as the $1322 resistance area is intact.