Gold’s selloff today finally pushes it to a downside break out. For now, near term outlook will stay bearish as long as 1879.75 minor resistance holds. Sustained trading below 1848.39 support will confirm resumption of whole decline from 2075.18. Such fall is seen as a correction to the long term up trend from 1160.17. Next medium term target will be 55 week EMA (now at 1750.89). Though, we’d expect strong support from 38.2% retracement of 1160.17 to 2075.18 at 1725.64 to contain downside. Meanwhile, break of 1879.75 resistance will dampen this bearish view and turn outlook neutral first.
