Gold price has broken below support of $1,400 and as we explained last week, it was vulnerable to a new downward wave towards $1,380-70 area. Price has reached our short-term downside target and important short-term support trend line.
Blue rectangle - target
Green line support trend line
Gold price has reached the green trend line support and the 50% Fibonacci retracement from $1,319. Gold price will most probably stop the decline around current levels. Price should start an upward reversal from the $1,370-80 area. If this does not happen then next support and most crucial one is found at $1,350-60 which is the previous highs and previous resistance. Bulls do not want to see price end the week below this level. On the other hand bears do not want to see Gold price recapture $1,400 and most importantly $1,425. If this happens we should expect price to move to new highs towards $1,500.
