Gold continues to gyrate lower and lost 1200 handle again as Dollar strengthens broadly. But for now, price actions from 1214.30 are viewed as a corrective retreat. This is supported by the structure of the choppy decline from 1214.30. Also, gold is held well above 1182.90 minor support. The rebound from 1160.36 is still in favor to extend higher at a later stage. Break of 1214.30 will target 55 day EMA (now at 1224.35) and above. However, break of 1182.90 will indicate completion of the rebound from 1160.36 and bring retest of this low.
Overall, 1160.36 is viewed as a medium term bottom the down trend from 1365.24 took a breath. While stronger rebound could be seen, upside should be limited by 38.2% retracement of 1365.24 to 1160.36 at 1238.62 to bring near term reversal. Down trend from 1365.24 is expected to resume later after the consolidation from 1160.36 completes.
