Gold reversed hard on Friday, and within the context of a downtrend this puts in position to trade lower. It is likely that we see follow-through on the reversal candle soon if it is to hold its bearish implications.
The general vicinity in which gold currently trades is a bit sticky with several inflection points since last year occurring around the 1765 area.
As long as the Friday high at 1781 isn’t breached on a daily closing basis, the current bearish outlook will remain intact with the September low at 1721 and March 2020 slope in focus as the next levels of support. A breakdown below this confluence in support will have a very big spot in play down around 1676.
