The price of gold fell broadly in November, dragging the yellow metal to less than $1210 amid landmark US elections as well as remarks from the Federal Reserve’s chief Jannet Yellen, signaling a potential rate hike sooner than expected. The technical bias remains bearish in long term because of a lower low and lower high in the recent upside wave.

Technical Analysis

As of this writing, the precious metal is being traded near $1206 an ounce. A huge support may be noted around $1200 which is a strong horizontal level on all timeframes. A sustained move below the $1200 support shall push yellow metal into deeper bearish territory, validating a move towards the $1046 in the long run which is the swing low of the last major downside move as demonstrated in the given below monthly chart.

On the upside, the yellow metal is expected to face a hurdle near $1337 which is a confluence of monthly trendline resistance as well as the swing high of the giant bearish candle emerged after the US elections. A break and monthly closing above the $1337 resistance shall push gold into bullish territory, opening door for $1400 and then $1470.

Fed Monetary Policy Outlook

Last week, Yellen signaled a rate hike sooner than previously thought by many analysts. She cited record-low unemployment rate and improving inflation outlook as ground for upcoming hike in the benchmark interest rate. Gold reacted sharply on Yellen’s comments and accelerated downside movement.

Trade Idea

Considering the overall technical and fundamental outlook, selling the precious metal on a breakout below the $1200 support can be a good strategy in long term.