As gold fell through the 1654 level, we decided to close our long position and take a small $17 loss.

The market looks technically weak and although gold is trading back above 1654 now, we do not think this will be sustained for long.  Gold remains below all of the major moving averages and cannot sustain any kind of rally.  Open interest is falling rapidly as are ETF holdings, we can only see lower prices in the short term.

However, bottoms happen rapidly in gold and we are always alert to enter the market when the trade looks compelling.

Gold sold off yesterday and found support at 1654, the exact 61.8% retracement of the move up from 1628 to 1697.

We remain long from 1670, though our bullish view has been tempered somewhat by the last couple of days' action and we are watchful for a move lower.

In our view, it is critical that the 1654 support level holds fior the bullish case to remain alive and for 1700 to be captured in short order.

Gold drifted lower after hitting a high of 1696 yesterday on options expiry day.  Some commentators highlighted a large number of 1700 April Calls that meant option writers wanted, and succeeded, in keeping the price pinned below the 1700 strike for expiry.

All in all, options expiry day can be strange and volatile and should not be watched too closely from a technical standpoint.

Today's video looks at the very short term picture and our views on where the market is headed after this brief, shallow corrrection.

Gold surged higher yesterday and it appears more likely that a bottom is in for this corrective cycle.  Gold should move higher over the next couple of months and we expect the market to make new highs.

We have taken a long postion at 1670 with our stop loss positioned as advised in our daily video.

We found the trading on Friday very interesting, gold recovered well off the lows around 1628 and broke the downsloping trendline from the previous few sessions.   The low of the correction so far is approximately 61.8% of the move from the December lows.

We consider that a bottom may be in for this correction, though it is still too early to say and the "washout low" we discussed last week may happen this week.  We are poised to go long and our subscribers wil lbe the first to know, as usual.

Although gold managed to hold above 1630 yesterday, the market still remains very weak technically, with a well defined pattern of lower highs and lower lows.

We still consider a break to the downside to be highly likely and the target we identified last week for this Wave C remains valid.

As predicted yesterday, gold appears to be breaking down below support at 1634 and lower prices, maybe much lower prices, could be seen shortly.

Our target is being watched closely and our subscribers will be the first to know when we enter the market.

Gold remains within the 1634-1670 range of the past few days and a break out of either side should result in a larger move.

We expect this breakout to be to the downside, the market looks weak technically, volumes are low and this does not look like a bottom to us.

Gold has sold off after failing to breach the mid-1660s resistance area and looks poised to test the 1634 support level.  A breach of this will probably see sharply lower prices, though a final bottom may not be far off below this.

Our subscribers know our target and wil lbe poised to enter the market long when the signlas tell us the time is right.

Gold has again hit resistance in the mid-1660s and it looks like the market is ready to start selling off again soon.

The next wave down should go below 1634 and may well be the final washout of this move lower.