Black lines- Fibonacci retracements
Blue rectangles- support (broken)
Gold price has broken below the short-term support of $1,660 and has moved as low as $1,640. Trend remains bearish as price continues making lower lows and lower highs. Bulls managed only to retrace 38% of the previous decline. This price action confirms the weakness by bulls to make a bigger bounce. The inability to reach the 50% retracement has lead price to break below short-term support. Next short-term downside target is at $1,620. At $1,620-$1,600 we find a long-term support that is very important. A bounce from that area is justified.