In case of gold, the fall is unfolding in a channelised manner. Recently, gold touched the lower end of the channel and achieved the equality target, and has bounced towards the 40-daily exponential moving average (DEMA), the daily upper Bollinger Band and the upper end of the channel. From there, the yellow metal has started a fresh move on the downside. The daily momentum indicator has triggered a bearish crossover. On the way down, it has broken the key daily moving averages. The reversal can be trailed to the recent high, ie $1,697.50. On the downside, $1,626 and $1,600 will be the key levels to watch out for.
