Gold touched a new 9-month low yesterday. After the market opened at 1765, the price was bounded by 1765-72 throughout the Asian and European sessions. The selling momentum has resumed as the market approaches the US session. Once the price cleared the support at 1750(1), it went to a day-low near 1731. The day ended at 1738, down by USD 26.

Gold seems to have found an S-T support near 1730. The fall originated from 1800 should slow down as long as the price can stand above the S-T resistance line(2). The operation range has shifted from yesterday’s 1750-83 to 1730-65(3), where S-T resistance sits at 1750 for now.

The price has reached our target of 1730 within 48 hours after it broke the critical 1800 support on the daily chart, and the 1:1 pattern (5) is completed. The downtrend channel(4) remains valid; wait for the next pattern to form for now.

S-T Resistances:

1765
1760

1750

Market price: 1746

S-T Supports:

1738-40

1730-31

1720

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