Gold Price Breaks Below January Range

The price of gold clears the January low ($2002) to register a fresh yearly low ($1984), and bullion may attempt to test the December low ($1973) as the 50-Day SMA ($2031) no longer reflects a positive slope.

Gold Price Outlook

The recent weakness in the price of gold has pushed the Relative Strength Index (RSI) to its lowest level since October, and a move below 30 in the oscillator is likely to be accompanied by a further decline in bullion like the price action from last year.

A break/close below the $1976 (50% Fibonacci retracement) to $1977 (50% Fibonacci extension) area may push the price of gold towards $1936 (61.8% Fibonacci retracement) to $1937 (38.2% Fibonacci extension) region, which sits just above the November low ($1932).

Nevertheless, the price of gold may track the December range if it fails to break/close below the $1976 (50% Fibonacci retracement) to $1977 (50% Fibonacci extension) area but need a move above the $2016 (38.2% Fibonacci retracement) to $2020 (78.6% Fibonacci extension) region to bring the monthly high ($2066) on the radar.