Gold fell sharply overnight, though bounced off 1337 and had since recovered strongly to currently trade around 1387.
It appears that gold is tracing out a triangle consolidation near the lows - if this is the case, then the most likely scenario is for further declines, as the odds favour a downside break of the triangle. A break above 1404 will negate this pattern and suggest more upside and a test of 1450 is more likely.
The recent weakness in oil and equities, as well as other commodities and precious metals is signalling a deflationary environment ahead. This is incredible, considering the huge amounts of economic stimulus pumped into the economy and the historically low interest environment we have been in for the past 4 years.
The suggestion that Europe and the US will follow Japan into a multi-decade deflationary stagnation, after all the efforts to avoid such a scenario, is extremely worrying.
Today's video to subscribers looks at yesterday's trading in detail and