Gold fell more than 1% yesterday. The market opened at 1955 and the selling pressure was quite strong back from the weekend. The price broke the critical 1950(1) support early in the Asian session and soon cleared all the buying support at the 1941-43(2) zone. It touched the day low 1916 before the day ending at 1922, dropping USD 32.

An S-T resistance line(4) has been formed in the 1-hour chart in the past 24 hours. At this point, if the pice can escape the current downtrend, breaking out from the selling of trendline(4) in the next 12 hours, it will be able to stay within the horizontal range of 1915-50(3) for the next at least 24-48 hours. Otherwise, the trendline(4) will lead the price lower, breaking the critical support of 1915(5) and further toward 1900.

The selling is strong in the daily chart, where the fall yesterday is one of the deepest 1-day drop in the past 2 week. A reversal has yet to appear, so we can expect the price will carry the selling momentum from yesterday and consolidate further in early sessions, testing the support of 1915. Technically, if the price fails to defend the 1920(7) support at the end of the day, the price will drop further toward 1894 or further down to 1880 before Friday this week.

S-T Resistances:

1950

1940-41

1930

Market price: 1922

S-T Supports:

1920

1915

1910-08

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