The support is provided by the 100 percent Fibonacci projection level of a downward wave (c), which started at the Feb. 7 high of $1,682.90. The next support will be at $1,629, the 123.6 percent projection level.

The drop on Wednesday has indicated an extension of the wave (c). However, the extension will only be confirmed when gold drops below $1,638.

Resistance is at $1,648, a break above which will make the signals neutral.

No information in this analysis should be considered as being business, financial or legal advice. Each reader should consult his or her own professional or other advisers for business, financial or legal advice regarding the products mentioned in the analyses.