Gold fell almost 1% last Friday. The price had kept dropping after the market opened near 1799 at the early Asian session. The selling had accelerated after the price broke out from the uptrend channel(1) at the US session opening. The price touched a day-low near 1783, the day ended low by USD15.

The uptrend that originated from early October is now officially completed after the price escaped from the channel(1). The selling pressure so far is quite strong since the price has failed to close above 1800 in the past week. An S-T downtrend channel(2) has been formed by the 2 peaks from last week, with 1788 being the resistance for now.

As mentioned last Friday, if the price fails to stay above 1800, it will have to escape the uptrend channel(4) on the daily chart. The 1780-1810 range(3) is still valid as the price so far has not been able to close below 1780, and the 20 days MA provides support on the downside.

S-T Resistances:

1800

1793

1788

Market price: 1783

S-T Supports:

1780

1776

1770

Risk Disclosure: Gold Bullion/Silver (“Bullion”) trading carries a high degree of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. This article is for reference only and is not a solicitation or advice to trade any currencies and investment products . Before deciding to trade Bullion you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment or even more in extreme circumstances (such as Gapping underlying markets) and therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading Bullion, and seek advice from an independent financial advisor if you require. Client should not make investment decision solely based on the point of view and information on this article.