Gold dropped nearly $40 yesterday to close at $1808 and is currently trading further lower at $1806. The intraday support levels are at $1797 and $1784. The near-term resistance areas are at $1721 and $1736.
On the intraday charts, the yellow metal now appears to be heading below the $1800 mark following the bearish pattern near the recent peak. The SMA-14 is indicating resistance at $1838 while the SMA-50 support line is at $1789. The mid-band is at $1823 and the RSI is now below the neutral zone. The intraday price pattern is now strongly bearish and favors selling entries on small rallies towards $1814 with a target of $1798 and a stop-loss at $1822.
