Gold’s sharp fall and break of 1281.97 minor support suggests that rebound from 1266.26 has completed at 1303.28, failing to sustain above 1300 handle. More importantly, the development indicates that corrective decline from 1346.71 is not completed yet. Bias is now turned back to the downside for 1266.26 low.
Firm break of 1266.26 will extend the correction from 1346.71 to 50% retracement of 1160.17 to 1346.71 at 1253.44 and possibly below. For now, we’d expect strong support from 61.8% retracement at 1231.42 to contain downside to complete the correction.