The precious metal is extending losses as the 200-day moving average gives way.
Price action is, however, showing signs of a rebound near the current five-month low.
The Stochastics oscillator is also showing signs of a bullish divergence.
This could mean that gold prices will continue to retrace in the short term.
We expect the 1817.80 level to remain in play. A retest of this level as resistance will confirm the downside in the precious metal.