Gold Sell Off

Gold has been trading sharply to the downside since it's peak of $1,365 in mid April. The precious metal reached a new low in the early trading hours today when price dipped below the support level at $1,255 going to a low of $1,253.

The main trend remains bearish for the time being as we would need a strong buy signal, most likely ignited by weak macro picture. As the European market and the US market are witnessing redemptions, we could expect some of the money to be allocated in the Gold market.

Main target for the bear camp is $1,235, whereas bulls are eyeing the levels above $1,280 in order for the trend to be considered bullish.

Chart: XAU/USD H4