Gold slipped further yesterday. The market has opened at 1980, and the price has kept slipping throughout the trading day; it broke last Friday’s low, 1959, at the US session opening. The market closed near day low at 1950, with the day lower by USD 37.

The price has broken the lower support the downtrend channel(2) early in the Asian session today, a sign of the downward momentum accelerating. At the same time, the price has crossed the major support of 1950(1), triggering a new round of selling. The target to the downside can now be set at 1920(3) & 1880(4) if it falls further.

The price has escaped the supporting zone(4) on the daiy chart from the weekend, a sign of the market turning south. As the price broke the critical support 1950, expect the price to consolidate further. 1910(6) can be set as the first target to the downside.

S-T Resistances:

1960

1950

1940

Market price: 1932

S-T Supports:

1925

1920-70

1910

Risk Disclosure: Gold Bullion/Silver (“Bullion”) trading carries a high degree of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. This article is for reference only and is not a solicitation or advice to trade any currencies and investment products . Before deciding to trade Bullion you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment or even more in extreme circumstances (such as Gapping underlying markets) and therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading Bullion, and seek advice from an independent financial advisor if you require. Client should not make investment decision solely based on the point of view and information on this article.