However, in another positive development for the bulls, the market found support at 1577 and, in a repeat of Friday's price action, bounced strongly to end the day above unchanged at 1592 and form a bullish "hammer" candlestick on the daily chart.
The price action continues to suggest that sentiment in gold is tilting back towards a "buy the dips" mentality, indicative of a bull trend. This is in contrast to the "sell the rallies" sentiment that has prevailed for the past 5 months.
The bulls will want to see a strong showing today to form a solid green candlestick on the weekly chart and set the market up for further gains next week. The confidence is returning to the bulls after a long correction, with the attitude being "if the recent strong data from the US can't break the 1550-1560 support zone, what will?"
Today's video for subscribers looks at yesterday's trading in more detail and our thoughts on where the market is headed next week.