Gold pulled back further yesterday. The market opened at 1977 on Tuesday. Carried the bearish momentum from the US session the day before, the price broke out from the supporting trend(1) early in the Asian session. The drop yesterday officially began at the US session after it reached the day-high at 1981. The selling has accelerated as it cleared all the support at 1960(2). The price dropped to the day-low at 1943, and the day ended at 1949, down by USD 29.

Gold has fallen as expected, but the selling was stronger than we anticipated yesterday. Althought the price is now supporting at last week’s low of 1941-43, a clear sign of bottoming out is yet to appear. A new round of selling toward 1915-20 will be triggered if the price clears the buying support at 1940; until then, 1940-60 should be the range.

The selling signal(4) is still in effect as the price has yet to show a reversal signal on the daily chart. The 50 days MA(5) & 1920 should be the upcoming support to the downside.

S-T Resistances:

1970-74

1960

1950

Market price: 1942

S-T Supports:

1930

1920

1915

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