Gold subsequently rallied in the afternoon session, reaching 1653 before finding resistance. The market again found resistance at that level overnight to potentially form a "double top" and is currently trading around 1647.
The failure of the triangle pattern is a very bearish sign and we expect further downside after a short relief rally. We would be surprised if we do not test the spike low at 1625 - if this level gives way, then much lower prices become likely.
Oil remains very strong and the dollar weak, however gold's normal relationship with these two markets has become decoupled recently. Whenever this has happened in the past, the usual correlations re-established themselves in time.
Today's video looks at yesterday's price action in more detail and our price targets for the recovery rally.