GOLD - USD - Plunged and Hit Our Recommended Target at $1,214 - 07/10/2017 (GMT)

The yellow metal plunged almost 5% since May while it slipped below the 50-month SMA, creating the third red month in a row. On a weekly timeframe, the XAU/USD pair printed two red weeks and approached the lower band of the Bollinger Band. Meanwhile, the price hit the $1,207 price level and posted a new four-month low.

Our prediction for further losses in the previous analysis verified and the precious metal reached our recommended target at $1,214 (see our technical analysis here: http://bit.ly/2tDJeNL). Now, the price is trying to slip below the fresh low near the lower band of the Bollinger Band and the immediate support is at $1,195. RSI declined below the 30 level and inserted the oversold path whilst MACD is moving far away from its trigger line in the bearish territory.