Gold’s correction extends lower today and breaks 1700 handle. It’s now pressing medium term channel support and there is prospect of a quick rebound. Yet, break of 1740.32 resistance is needed to indicate short term bottoming first. Otherwise, further decline is still in favor.
Meanwhile, sustained trading below the channel support will indicates downside acceleration. Gold should then dive further to 50% retracement of 1160.17 to 2075.18 at 1617.67 or even 61.8% retracement at 1509.70, before forming a bottom.
