Review: "Gold is currently traded at $938.05. Spot gold has fallen below a support dating from last fall and right now stays just above this line. Using logarithmic scale it is already traded below this line. Next target could be $930. In summary, I see both EUR/USD and Gold spot in a downtrend in the short-term."
Outlook: Gold dropped below long-term to a day-low of $923 and is now traded at $926 after a rally to $930, i.d. at the projected first target. What's the next step?
The level of $925/6 is a strong support because it is (1) the 61.8% fibonacci retracement level of the last rally and (2) more importantly the area around the neck line of the S-H-S formation that has developed between Aug 2008 to Feb 2009.
In summary, I think we have good support here. The market should stabilize and go at least sideways in the short-term IMO.