Technical analysis:
Gold has been trading downside as I expected and the price has reached the first downside objective at $1.616 level. Anyway, I see potential for further downside movement in case of the downside breakout of $1.616.
Trading recommendation:
In case of the breakout of support at $1.616, I see potential for further drop towards next downside reference levels.
Watch for the potential selling opportunities on the rallies with the downside objective at $1.572.
MACD oscillator is showing downside reading, which is sign that sellers are in control.
Key resistance is set at the price of $1.639
