Gold prices tumbled during the first trading day of the week declining to as low as 1844 USD/Oz. However, it was able to trim these losses and closed the day around 1866 USD/Oz. Yet, the daily close is another bearish sign, since gold has broken the upside channel on the daily chart.
Such a break remains in line with our expectations and the current downside retracement is not over yet. In the meantime, gold may retest its 200-day MA which stands around 1839 USD/Oz which likely to hold for a while before the uptrend resumes. Yet, we prefer to keep gold under our radar for few more days at least until the Federal Reserve decision, which would confirm whether gold will resume its major uptrend or the downside retracement has more legs to go.