Overnight gold has tumbled further, hitting a low of 1273 before recovering slightly, however the price remains below 1282 and looks to be headed lower in the short term.
The next support level is 1268-1270 and a break of this level will see gold fall towards 1250 and 1238-1240.
As we have pointed out to our subscribers many times over the past week or so, it seems that gold is following the pattern of the previous two declines very closely - if this is the case the sell off should accelerate sharply from here.
What is really ominous for the bulls is that gold is falling alongside a weak dollar - should the dollar find some renewed strength, which seems likely, the consequences for gold could be dire.
Equities continue to consolidate near to all time highs and the rally looks nowhere near over yet despite the rather stretched valuations and overbought market condition - a bull market can stay overbought for a long, long time.
Today's video for subscribers looks at the unfolding decline in more detail and our thoughts on gold's likely trading pattern for the next few weeks.