Gold supported at 1800 last Friday. The day began at 1882. After a brief rebound toward 1828 at the European session, the selling resumed after the price cleared the support at 1820. The gold price fell all the way to a day-low at 1799 at the US session opening with the day ending near 1811, down by USD 9.

The resistance line(2) originated from 1909 is still valid, and the drop seems to accelerate, where a steeper downward trendline(3) has formed in the Asian session today. The price is trying to break the 1800 support for the moment. If the price clears all the buying orders at 1800, the next downside target will be at 1780. However, the trendline(3) is relatively steep on the daily chart ; if the selling momentum can’t sustain in the next 12 hours, the price will once again climb above the trendline(3), ending the current downtrend.

Gold is still maintaining its path within the downtrend channel (2), waiting for a reversal signal to be formed. If the price clears the support at 1800, the downside target will be at 1780.

S-T Resistances:

1815

1808-10

1800

Market price: 1798

S-T Supports:

1790-92

1787

1780

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