Gold closed well below $1,315 yesterday, validating the bearish inside day candle created on Tuesday. The pattern indicates that the bounce from lows near $1,280 seen on March 7 has ended and prices could revisit levels below $1,300 in a day or two.
Even so, sellers need to observe caution as recession fears are weighing over risk assets. As of writing, the futures on the S&P 500 index are down 0.43 percent. Meanwhile, the 10-year treasury yield hit a 15-month low of 2.345 percent soon before press time. That could weaken the US dollar, helping gold recover yesterday’s losses.
The bearish setup would be invalidated if prices rise back above $1,320. As of writing, the yellow metal is trading largely unchanged on the day at $1,300.
Trend: Cautiously bearish