Gold price is challenging September lows after breaking below $1,500. Gold price has potential for at least a move towards $1,460 where we find equality in the current move lower relative to the first decline we saw in late August.
Red lines – bullish channel
Blue rectangle – support
Gold price has broken out of the bullish channel. In our weekly analysis we noted that Gold is expected to make a pull back lower towards $1,450-$1,400 at least. Gold is now challenging important horizontal support after exiting the bullish channel. First downside target is at $1,460 and next at $1,420. Short-term trend is bearish as long as price is below $1,536. A break above $1,536 will push price towards $1,600 and higher. But for now we focus on the bearish side as we see a potential for more downside.