Gold cleared the 1940 support last Friday. The price has started its journey down after it the day began at 1955 and touched the day-high 1955 in the Asian session. It broke out from the 1940(1) support during the European session hit the day-low at 1926. The day ended at 1929, down by USD 21.

After the price got below 1940 last Friday, gold is now resuming it position back to its previous range of 1915-40(3). The downtrend originated from 1998 seems to be accelerating at the moment and is yet to find its bottom. The price needs to breakout from the S-T resistance line(2) to create a bottoming out signal on the 1-hour chart. If the price clears the 1915 support in S-T, the downside target can be set at 1900, or lower at 1894.

Gold has been defending the 1920 support on the daily chart since mid-Mar. It will be the first bearish signal of the price to head toward 1880 if the price close below 1920 on the daily chart.

S-T Resistances:

1940

1929-30

1920

Market price: 1915

S-T Supports:

1910-08

1900

1894

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.