Gold Is Retracing

Although the UK referendum and the subsequent market turmoil occurred last Thursday, it took several days of sideways consolidation before most of the affected currency pairs and other instruments finally started retracing.

Gold, in particular, may not only be retracing, but we could actually be looking at a reversal pattern, as it formed a shooting star candlestick on the daily time-frame yesterday and today it started moving to the downside. 

Gold is currently testing the support at $1,305 level, which is (MA)89 on the one-hour time-frame, and a possible breakout below that level will lead to a further drop to $1,300 and possibly even $1,280 all over again.