The losses accelerated during the afternoon, with gold dipping to 1567 before bouncing back to close around 1573. Overnight, gold has found some physical demand out of Asia and the price is currently trading around 1576.
With a number of data releases later today, we should see a bit more trading activity - the bulls will want to see gold take out 1583, the high from Friday, to gain confidence that a bottom is in, whilst the bears will be aiming for support around 1560.
Oil is recovering after last weeks huge declines, which may help gold, whilst the dollar remains stuck below 83 and is clearly struggling to move above that level, again potentially supportive for gold.
We have said many times before that we do not expect a major rally in gold to begin until stocks correct - it appears to us that the S&P 500 is forming a top, however this may take a few weeks to complete, as is often the case with major tops in equities.
Today's video for subscribers looks at the recent trading in more detail and what it means for gold