As the metal dropped sharply below the psychological barrier 1300.00, a long bearish candle was formed yesterday which was reflected on RSI as an attempt to form a negative crossover as showing on graph. Trading below the referred to level and below 38.2% correction showing on graph at 1309.35 might put further negative pressure to test 1285.00.

Of note, extending the downside move depends on breaking the previous bottom at 1277.00, as breaking it could extend the downside move towards 61.8% correction at 1260.00 showing on graph.

 

Based on the above, sell gold below 1300.00 targeting 1293.00, 1285.00 then 1278.00 then stop-loss above 1309.40