Gold hovered around the 2-month low yesterday. The day began at 1898, throughout the day. The price was bounded between 1894-and 1906, with the price briefly touching the day-high at 1911. The day ended up with USD 7, closing at 1904.

Gold has not yet escaped the S-T downtrend in the 1-hour chart, still under pressure from the resistance line(2). The price is currently supported by 1894(3); If it can clear all the buying orders at this level, the 1st downside target will be at 1880 or even lower near 1860. Until then, we can still take full advantage of the existing range of 1894-1915(1).

The breaking of the double-top neckline(4) is still indicating a bearish trend on the daily chart. Unless the price can go back to 1920 for the daily close, a 40-80 drop is on its way.

S-T Resistances:

1915

1908-10

1900

Market price: 1898

S-T Supports:

1894

1890-88

1880

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.