Gold fell as far as 1281 before finding support, though this morning is seeing follow through selling and a low so far of 1279.
The dollar is now trading well over 81, after the "double whammy" of an ECB rate cut on Thursday and the NFP number on Friday. We commented previously that the dollar will be key to gold's fortunes for the rest of 2013, with the break and close above 81 potentially very bearish for gold.
The fact that gold has broken below the 61.8% retracement level at 1294 is also an ominous indicator and suggests gold is about to return to 1250 as a minimum. A break of 1250 will see a swift return to key support at 1180.
Support can be found at 1277, 1260, 1250, 1207 and 1180. A break of 1180 would have serious bearish implications for gold and suggest a decline to 1000-1050 as a minimum.
Resistance can be found at 1291, 1300, 1310, 1320-1322, 1328-1330, 1338-1342, 1352-1355 and 1360. A break above 1360 would be the first suggestion of a new bull trend, though it would take a break of 1434 to confirm this was the case, with a target of 1525 as a minimum.
Today's video for subscribers looks at the recent decline in more detail and our strategy for our next trade.