Gold fell below 1,700 psychological level as the US Dollar continues to assert strength against the other major currencies. The metal is trading at 1,695 level and it could reach 1,700 level to retest it before dropping deeper.
You knew from my analyses that gold (XAU/USD) is expected to resume its downside movement after dropping below the black line which acted as support. 1,700 level represented a short-term downside target.
Dropping below this psychological level makes us believe that XAU/USD could continue to drop in the upcoming period.
Gold Trading Conclusion!
Gold could extend its decline, it could approach and reach fresh new lows if it stabilizes below 1,700 level. Dropping below 1,685 could represent a selling opportunity with a potential downside target around 1,650 level.
