In our previous analysis we mentioned that Gold price was showing bearish reversal signs and that a rejection at the $1,700 combined with a bearish divergence in RSI, increased the chances of a deep pull back in Gold.
In our analysis we also explained that a break below short-term support at $1,625-30 area would increase the chances of a move below $1,600 and towards the lower channel boundary. Today's sharp decline has pushed price towards the channel boundary and so far support holds. The RSI is moving lower towards oversold territory but I would not be surprised to see Gold make a new lower low at the beginning of next week. So far there is not indication of a reversal to the upside. Trend remains bearish.
