Gold is now closing in on support at 1220, a level that has not been seen for 3 years and only $70 away from our long term target for this decline at 1156.
Equities are moving higher and oil is recovering, whilst the dollar continues to surge higher, moving back towards key resistance at 84-84.50. A break through this level will see gold under further selling pressure and suggest a potential move as low as 1000 in the yellow metal.
Gold is now very oversold and we suspect we will see an attempt at a bottom formed very soon, though the market is very fragile and could move significantly lower.
Today's video for subscribers looks at the recent decline in more detail and our thoughts for our next trade.