Since the beginning of the year, the precious metal lost nearly 0.8%, but this past week dropped almost 2.0% and made a phase change, shifting from a warning to a distribution phase. Last week the commodity plunged with a wide range and closed near the low of the week, in addition, managed to close below the previous week low, which suggests a strong bearish momentum. The stochastic is showing is showing an oversold market although is still displaying bearish momentum. Gold broke to the downside the lower end of the consolidation zone signs that a bearish trend may be developing. However, we should expect a retest to the previous support now resistance at 1,307.45 before the resumption of the downward trend. Expecting an upward move to 2015 high at 1,307.45 on a bounce from a weekly support at 1,279.90 (scenario 1) however a bounce from the 61.8 Fibonacci retracement at 1,266.33 may trigger another bullish run up to 2015 high at 1,307.45 (scenario 2).