- Gold's daily chart shows a bearish Doji reversal.
- The yellow metal risks falling to support at $1,456.
Gold prices could drop to support at $1,456, the candlestick pattern on the daily chart indicates.
On Thursday, the yellow metal closed below $1,466 – the low of the Wednesday's Doji candle – confirming a bearish reversal. Put simply, the corrective bounce from the Nov. 12 low of $1,445 has ended and the bears have regained control.
Prices, therefore, look set to test support at $1,456 (Nov. 18 low).
Supporting the bearish case is the below-50 reading on the 14-day relative strength index (RSI). The ascending trendline breakdown on the hourly chart also indicates the path of least resistance is to the downside. As noted earlier this week, the gold market sentiment is still quite bearish.
On the higher side, Wednesday's Doji candle high of $1,479 is the level to beat for the bulls.
Daily chart
-637099863333847833.png)
Trend: Bearish
Technical levels
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