Gold dropped almost USD 30 yesterday. The market opened near day-high at 1883. The selling resumed once the price broke out from the support trendline(1) in the Asian session. After a brief rebound at the US session, the price broke the 1860 support and ended the day at 1853.

Gold has been under the selling pressure from the downward trendline(2) on the 1-hour chart. Within the next 24 hours, the price must climb above Trendline(2) in order to stay within the 1850-90 range-bound; otherwise, a new round of selling will begin after it clears the support at 1850.

It is the first time in 2 months that the price closed below 1860 on the daily chart , another sign of gold getting weaker. Still waiting for a bottoming out signal to occur, expect the bear to remain dominant in the market. A new round of selling will happen if the price break the 1850(4) support.

S-T Resistances:

1874

1870

1865

Market price: 1863

S-T Supports:

1860

1855

1850

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