Technical analysis:
Gold has been trading downside as I expected and the price has reached the downside targets . Anyway, I see potential for further downside movement due to the bear flag pattern.
Trading recommendation:
Due to the downside momentum and the supply in control I see potential for further drop.
Watch for the potential selling opportunities in case of the breakout of the bear flag pattern.
Downside objective at the price of $1.640
MACD oscillator is showing negative reading, which is sign that sellers are in control.
Resistance set at the price of $1.672
