Technical analysis:
Gold has been trading downside as I expected. There is the breakout of the rising channel in the background and potential for further drop.
Trading recommendation:
Due to the breakout of the rising channel in the background and the downside trend, I see further drop.
Watch for potential selling opportunities on the intraday rallies with the downside objective at the price of $1.730.
Stochastic is showing oversold condition but no evidence for the reversal, which is good sign for further downside movement.
Key short-term resistance is set at the price of $1.764
