Gold breached the key 1675 support to the downside. Rising long-term real yields, aggressive central banks, and fast-decreasing ETF gold holdings continue to put more pressure on a more bearish outlook.
Breaking of 1675 support is a major development and signals a possible downside. But some indicators are hinting a short-term buying reaction might be coming. RSI, which is usually working pretty well for the gold is flirting with the oversold zone. Z-Score for the 233-day moving average is at the lowest since 2018, below 2 standard deviations might be hinting at a limited mean reversion.
If a buying reaction happens above 1625 or 1600 supports, it might be limited to the 1675 – 1690 resistance zone. Technically and fundamentally, medium-term down pressures are still ongoing.
