Gold bounced off the super stiff resistance at $943/946. Worse, the long-term support that has developed since last fall was broken to the downside.
So, I strongly believe that the short-term trend is down.
Next support is $923/6, followed by $913.The $913 is the key support to the downside as the $943/6 level is for the upside. If the latter is taken out there will be an attack of the massive $1000 level again. I doubt that will happen in the short-term. If $913 fall then we will test the massive support at $850/880. This support will probably hold. If so, then there is a very good chance that the $1000 level can be attacked quite soon thereafter since another test would bolster up the lank right shoulder.
In summary, gold consolidation should continue in the next weeks. The key level to watch in the very short-term is $910/913. A fall below this level gives way to the massive support zone seen in the chart. If gold turns at the right shoulder which would be a very healthy development I will be strongly bullish for this market.
Disclosure: No positions