Spot gold may bounce moderately to a resistance at $1,575 per ounce before turning around and testing a support at $1,553.
The deep fall from the Wednesday high of $1,610.90 suggests a reversal of the uptrend from the $1,458.17. The pattern from Jan. 6 looks like a head-and-shoulders, the right shoulder of which is developing.
Most likely, this right shoulder would end around $1,575. Support is at $1,553, a break below which could cause a fall to $1,535.
On the daily chart, a shooting star formed on Wednesday. It suggests a further slide towards $1,524, the 138.2% projection level of an uptrend from $1,265.90