In our previous (mid-August) Wire relating to the gold price technicals, it was highlighted that spot gold had the potential to trigger a technical sell signal.(VIEW LINK) The spot gold price subsequently generated a technical sell signal at US$1321 on 25/8/16. The technical outlook turned negative at that point. The minimum downside technical price target was nominated at US$1265 - the minimum expectation for a pullback. The US$40 decline last night resulted in the spot gold price reaching an intra-session low of US$1266. There is no sign of a turnaround / or base forming emerging.
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