Gold’s selloff resumes today by breaking through 1800 handle and hits as low as 1764.31 so far. Further decline is now expected as long as 1818.26 resistance holds. Current decline from 2075.18 is seen as correcting whole up trend from 1160.17. Deeper fall should be seen to 55 week EMA (now at 1749.77) and possibly slightly below.
But we’d expect strong support from 38.2% retracement of 1160.17 to 2075.18 at 1725.64 to contain downside and bring rebound. However, Sustained break of 1749.77 could bring even deeper correction to 61.8% retracement at 1509.70.
