The precious metal is down nearly 1% intraday as the short term bearish momentum is strong. Price action is likely to retest the support area near 1817.80.
The stochastics oscillator on the intraday charts are also signaling further room to the downside. However, the declines might stabilize after testing the 1817.80 level.
In the event that gold prices breakdown below this level, then we might expect to see further declines.
The initial price level to watch will be the 1785.25 level which marks the lows from the 4th of February.
A close below the swing low could potentially open the way for gold prices to test 1764.22 next.
