Gold prices took a dive yesterday suffering the largest one-day loss in two months as the US Dollar held onto its crisis-inspired gains and treasury bond yields recovered. Looking ahead, the precious metal may extend its drop today should bond yields keep moving higher, pressuring gold downwards.
Gold prices plunged lower breaking through the support marked by the July 2017 low at $1204.50. The precious metal is now in an oversold state while the next layer of support is at $1188 which is the 38.2% Fibonacci extension. The RSI is mixed to bullish suggesting a slight correction to the upside today, however watch out for the old-support turned resistance at $1204.50 where many sellers may jump back in.
Support: 1205.73 1197.75
Resistance: 1992.50 1188