Can gold break under 1200? (zt)

 

The current fall in gold is retesting the strong support area of $1200/toz. Can it break under it?

Yes, it certainly can, but the break is likely to be short lived.

The RSI has formed a positive divergence, i.e., while price of gold has fallen, the RSI has held above the lows, which is a positive sign and a sign of a bottom. Markets usually take off when positive divergences form at the bottom.