For the moment, gold is trading near $1,173 after placing a low of $1,160. It recently has formed a sort of a hammer candle pattern on the 2-hour chart. The hammered pattern followed by a strong bearish trend often causes a bullish reversal. That being said, can we expect a bullish reversal?
I wish I could say yes, but gold is still bearish and the violation of $1,181 has opened further room for selling until $1,157 and $1,131. But since the metal is in oversold zone, we may see a bullish retracement in it until $1,181 and $1,187. Stay tuned for more updates!