The 1525-1550 support zone is absolutely critical for gold and, as we have said many times, a breach of the support zone will see much lower prices very quickly, though a sharp rebound would then be expected.
We are approaching the apex of the large corrective triangle that gold has been tracing out since September, a resolution one way or the other is not far away. We still favour an upside break as this triangle seems to be a continuation pattern rather than a reversal.