Buyers are obviously losing momentum. They failed to recover after last week sell-off. They moved the spot to the 1295 area where they again lost steam. The precious metal turned bearish here and eased to 1285 first and then extended its decline to 1280 where the EMA100 slowed down its decline. We also noticed a "Shooting Star" formation yesterday. It is a bearish candlestick pattern and the current price action is conforming sellers' growing strength. The precious metal remained above the bullish moving averages. MACD continued moving downwards in the positive area. The Stochastic oscillator bounced from the overbought levels. The resistance stands at 1290, the support is at 1280.
We are receiving fresh selling signals every day now. We had a “Bearish engulfing” on Friday and a “Shooting star” yesterday. The clouds are seemed to be gathering around gold. If sellers regain control, they will aim at the 1280 handle first. We doubt that the EMA50 will be able to protect the downside. Sellers will easily regain the level, to our mind. If so, the spot may ease to 1270 afterwards.