Gold had a nice little 1 month rally after June 19th's FOMC Meeting when it rallied from the $1280 range to $1340. But the breakout above resistance at $1,335 was short lived. Part in due to the sell signal triggered by a crossover in the moving average convergence divergence (MACD) a couple days ago.
MACD is considered a basic yet dependable indicator that takes into account three exponential moving averages (EMA), the 9, 12, and 26 day averages. A bearish MACD crossover occurs when the MACD line crosses below the signal line.
Gold has found some support at $1292, it's 50 day moving average.
Fed Chair Janet Yellen told a Senate committee today that there will be a continuation of the current loose monetary policy until October, but beyond that traders think rates will inevitably go up, which means less reason to hold gold (as inflation protection).
I think we could we hit the June 3rd low of $1240 an ounce level quicker than some think.