Gold had crossed the high of $1,911 but it couldn’t sustain itself at the higher levels. The daily and the weekly upper Bollinger Bands checked its rise. Consequently it started its next leg of the correction. It broke the low of the previous fall ie $1,702 as well as the 20 weighted moving average (WMA) and the 40 weighted exponential moving average (WEMA) and touched our initial target ie the intermediate channel trendline. The weekly momentum indicator continues to remain in a sell mode. However from the channel line a bounce is likely. Hence fresh short positions can be created near $1,700 with a reversal of $1,776. On the downside, the lower end of the channel ($1,420) is the target.