Gold dropped to as low as 1689.36 yesterday and the break of 1693.64 support confirmed resumption of corrective fall from 1765.25. Deeper decline is now expected to 100% projection of 1765.25 to 1693.54 from 1745.14 at 1673.53 next.
Also, we’re holding on to the view that such decline is correcting whole rise from 1451.16 to 1765.25. 55 day EMA (now at 1685.97) is now a focus. Sustained break there will affirm our view and target 38.2% retracement of 1451.16 to 1765.25 at 1645.26 next. In any case, risk will stay on the downside as long as 1746.14 resistance holds, in case of recovery.