Technical analysis:

Gold has been trading downside as I expected. The price reached first downside target at the price of $1.860 but with ptoetnial for further drop towards $1.812.

Trading recommendation:

Still, watch for selling opportunities on the rallies with the next downside targets at the price of $1.842 and $1.812.

The main cause of the downside movement was the breakout of the well defined upside channel.

Stochastic is showing oversold condition but with no evidence of the reversal....