Follow up on yesterday’s comment, Gold’s sharp fall today and firm break of 1303.25 minor support confirms completion of corrective recovery from 1280.85, at 1324.49. Further decline is now expected as long as 1306.72 minor resistance holds. Based on current downside momentum, 1280.85 should at least be breached.
Key focus is indeed on 1276.76 cluster support (38.1% retracement of 1160.17 to 1346.17 at 1275.45). The break of medium term channel now affirms that 1346.71 is a medium term bottom on bearish divergence in daily MACD. Decisive break of 1275.45/1276.76 should also confirm completion of whole rise from 1160.17.
In that case, gold should have started another falling leg inside the long term range pattern. Deeper fall should then be seen back towards 61.8% retracement at 1234.42 and below.
