I had called on March 4 about a possible price-RSI divergence on the daily chart here Gold – watch out for bearish RSI divergence
Divergence was established on Friday and prices failed to chew through offers above 5-DMA today and dropped to $ 1240 levels.
Once again, pre-Fed thing appears to be behind the fall. Markets fear hawkish tone, courtesy of which the greenback is winning across the board.
Key support is now seen at $1227.56 (23.6% of Dec-Mar uptrend).
But bears should watch out for a rebound from $1227.56 tomorrow, in which case prices could make another attempt at 5-DMA.
However, metal remains sell on rise, given the bearish price-RSI divergence.