Spot Gold:
Gold fell lower as expected, and the lower price today does suggest that we are on our way down. We look to 1651/1650 to entice prices in the short term. Here we cover shorts. We would re-sell a break below 1650 as a loss through here keeps the pressure to the downside and see this come lower with 1638 to 1632 the short term objective.
Now we can expect the market to go lower, but initially we should hold 1632 first time round, however we would not be buyers on these lows, rather sell into strength looking for this to trade lower, 1608/1603 is the short term objective.
Now if we do hold 1650 we can see a case for the market correcting back to 1675/85 before another leg lower resumes.