Gold drops sharply following Dollar’s rebound today and the steep decline suggests that rise from 1562.9 has completed at 1703.28. At this point, outlook near term outlook is just neutral with 1557.04 resistance turned support intact. That is, larger up trend from 1160.17 is still in favor to extend through 1703.28 at a later stage.
However, the picture is not looking too good with bearish divergence condition in daily MACD. Firm break of 1557.04 will confirm medium term topping. In that case, we should at least see correction to 38.2% retracement of 1160.17 to 1703.28 at 1495.81.
