Please attribute the following commentary to Jeffrey Halley, senior market analyst at OANDA:
Finally capitulated after a number of unsuccessful attempts on the trendline seen in the chart below. The thing about metals is that when everyone runs for the door, they usually do at the same time and it is not a very large door. Yesterday was no exception.
The key support region around 1310 containing the 100-day moving average and trendline support gave way, and Gold dropped through 1300 as if it wasn’t even there. No doubt most of the street that was bullish had their stop losses under these levels, and the price action tells the story. Lots of sell stops, no buyers.
Today initial resistance is 1300/10 the breakout. Support at the overnight lows of 1365. The key support though is 1350/60. This contains some previous daily highs and lows as well as the 200-day moving average. A break here opens up 1200 on a technical basis.
I note however the daily RSI is seriously oversold.