Gold technical analysis: Teasing biggest monthly loss since November 2016

• Gold is on track to post biggest monthly loss in three years. 
• An impending bear cross favors a drop to $1,445.

Gold is currently trading at $1,455 per Oz, representing a 3.77% drop on the monthly opening price of $1,513.

If prices remain unchanged or drop further till NY close, the resulting monthly loss of 3.77% or higher would be the biggest since November 2016. Back then, the safe-haven yellow metal had dropped by 8.11%.

The probability of gold falling to $1,445 is high as technical studies are biased bearish. For instance, the 50- and 100-day moving averages are about to produce a bearish crossover. The price chart shows a lower high, lower low setup.

Further, the 14-day relative strength index is reporting bearish conditions with a below-50 print.

The outlook would turn bullish if prices rise above the Nov. 20 high of $1,479, invalidating the lower highs setup. That, move, however, is unlikely to happen on Friday.

Daily chart

Trend: Bearish

Technical levels