Gold has continued to sell off overnight and this morning and looks set to test the key 1625 support level. Should this level give way, a wave of stop losses will be triggered and gold will likely fall rapidly towards 1600.
The market has fallen steadily since breaking the triangle consolidation pattern on Monday and is now some 30 points lower on the week. If gold closes the week at these levels, the weekly chart will show become distinctly bearish and with weekly RSI around 40, still has some potential for further falls.
Outside markets continue to have almost no influence on gold, as the market appears to be beating its own path steadily lower.
Today's video looks at yesterday's price action in more detail and our strategy for our current trade.