Gold’s break of 55 day EMA now suggests that fall from 1703.28 has completed at 1451.16. Notable support was seen from 55 week EMA and above 1445.59 structural level. Nevertheless, such decline is just seen as the third leg of a medium term corrective pattern, to the whole rise from 1160.17. Therefore, while further rebound could be seen, upside should be limited by 1703.28 high. Another falling leg is expected at a later stage, to complete a three-wave corrective pattern.
The eventual depth of the correction would very much depend on the strength of the current second leg rebound. We’d keep open the case for a take of 1365.26 cluster support (61.8% retracement of 1160.17 to 1703.28 at 1367.63) before completing the correction.