The chart of gold below tells the story. Bullion prices have been falling and they are oversold on RSI-14. The violation of key support at the 1205-1210 zone has prompted high volume selling, which is indicative of investor capitulation. From a technical perspective, gold prices are now testing a Fibonacci retracement level at 1170.
This seems to be a classic setup for a revival in gold prices. Not so fast! While gold prices may stage an oversold rally here, a durable bottom may not be in place just yet.
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