GOLD - USD - Gold Plummeted More Than 6% Last Week - 11/14/2016 (GMT)

The XAU/USD pair plummeted more than 6% last week after the strong rebound on the $1,338 resistance level. The yellow metal recorded the first red week after three straight positive sessions and created a new four-month low at $1,213.

The technical structure suggests further downside movement on the daily chart, as the price is moving well below its moving averages and the technical indicators are biased lower after entering the negative territory. The MACD oscillator is moving below both, its zero and trigger lines suggesting further downside movement in the next few days. In addition, the Relative Strength Index (RSI) is following a downward path below 30, confirming the recent bearish attitude of the price. The next initial target is the next support level at $1,200, if there is a penetration of the $1,213 barrier. Otherwise, the price may retest the $1,241 resistance level.