Gold focuses on 635.36 and 627.62 if 640 doesnt holds

Gold is likely to suffer further with the focus on 635.36 and 627.62 if 640/641 doesnt holds.

Gold has stalled at 689.00, and the subsequent sell-off leaves scope for further downside potentially all the way down towards the 627.62 channel base.

The recent break above 676.35 had occurred with no real momentum behind it and the concern was that the break higher was unsustainable.

This sell-off with momentum still in a hard down position highlights the risk for further weakness in the metal.

The initial focus is on 641.10, the Jan 30 low where a break would open 635.36, 61.8% retracement of 602.20-689.00 and also expose the channel base at 627.62.

Resistance is at 677.60, Feb 28 high ahead of 689.00 which is now key resistance.