Overnight, gold has fallen further and is trading well below 1300 and the lower boundary of the recent uptrend - this is a bearish development and if gold cannot recover back into the up trend channel quickly the decline will accelerate in coming days.
A break of Friday's low at 1282 will see the bears drive home their advantage and push gold much lower as we commented was likely yesterday. We have just seen a bearish MACD crossover on the daily chart that portends much lower prices ahead.
Equities remain at all time highs and are consolidating recent gains, oil remains above $106 and the dollar has stabilised following a recent sharp decline. It is worrying for the bulls that gold is falling in an environment where the dollar is steady - we expect a dollar rally to commence imminently, pressuring gold further.
Today's video looks at the recent action in more detail and our thoughts for this week's trading.