XAUUSD extends declines, will it fall further?

The precious metal is down close to 0.80% intraday amid improving market sentiment.

Following the lower high forming at 1745.14, the declines are potentially signaling a further drop.

For the moment, the lower support level at 1717.65 will stall the declines.

This will potentially offer a modest rebound upon the initial test of the price point.

If there are no further declines, then expect gold to settle into a range within the said levels.

In the alternative scenario of a break down below 1717.65, we then expect a move lower to 1696.86 handle.

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