Since the start of the year the precious metal fell more than 9% and fell more than 1.0% this past week.
Last week the Gold went back and forward with a wide range, creating an outside day and closed in the middle of the weekly range also closing within previous week range suggesting indecision in the market.
The Stochastic is displaying an extreme oversold market although continues to show a strong bearish momentum suggesting a weakness in the precious metal.
Last week Gold made fresh year lows and continues in a well-established bearish phase, trading below all three 10, 50 and 200 week moving averages.
Expecting a downward move to a Fibonacci extension at 1045.27 on a break below a key level at 1070.83 (scenario 1) and a bounce from a Fibonacci extension at 1045.27 could push the precious metal up to a key level at 1070.83 (scenario 2).