ONG: Gold Daily Technical Outlook For Tuesday Dec. 13th

Gold dives further to as low as 1654.4 so far today. The break of 1667.1 support confirms resumption of whole decline from 1804.4. Also, it suggests that a rebound from 1535 is finished already. Intraday bias remains on the downside and deeper fall should be seen to 100% projection of 1804.4 to 1667.1 from 1767.1 at 1629.8. On the upside, above 1688.0 minor resistance will turn bias neutral and bring consolidations. But we'll stay bearish and expect another decline as long as 1767.1 resistance holds.

In the bigger picture, price actions form 1923.7 high is viewed as a medium term consolidation pattern only. The first leg has finished with a five to 1535. The second leg is likely completed at 1804.4. Fall from there is treated as the third leg of the consolidation and should target 1535 and possibly below. Though, at this point, we'd anticipate strong support from 1478.3/1577.4 support zone to complete the consolidation and bring up trend resumption.

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