It is very concerning for the bulls that in the face of sustained dollar weakness and a correction in equities, gold cannot move higher, with any rallies being quickly sold into.
In fact, since the dollar has fallen from highs above 84.50 down to its current level at 80.85, a fall of over 4%, gold has not been able to rally at all. With the S&P again testing 1600 and oil showing some strength, the conditions would appear to be ideal for gold to move higher - the fact that the price is falling is ominous for the bulls in the short term.
Gold remains stuck in the down trend that has been in play since October last year and is showing no signs yet of a bottom - the "double bottom" that many online commentators have claimed is forming looks more like a triangle consolidation pattern before further declines to us, with the price action since the 1338 low on 20 May forming what looks to be a classic "bear flag".
Today's video for subscribers looks at the recent trading action in more detail and our price targets for gold in the short term.