The next major support for gold is not until 1005 (former breakout level). Even then, I expect that level to be taken out without much of a fight as the deflationary environment has returned with a vengeance. Gold has reached resistance from Fibonacci (and former support), which extends to 1094. The retracement is satisfactory; favor the downside.
Jamie Saettele publishes Daily Technicals every weekday morning, COT analysis (published Friday evenings), technical analysis of currency crosses on Monday, Wednesday, and Friday (Euro and Yen crosses), and intraday trading strategy as market action dictates at the DailyFX Forum. He is the author of [I]Sentiment in the Forex Market[/I]. Follow his intraday market commentary and trades at DailyFX Forex Stream. Send requests to receive his reports via email to [email protected].