Gold loses its sparkle
Gold has sold off heavily over the past fortnight, losing $100 in value in under a month. The downtrend clearly remains in play despite the consolidation we have seen in the early part of this week.
Price is currently trading within a symmetrical triangle, which is a bearish formation in a downtrend and thus a downside breakout is expected in the near future. A break and close below $1088 would point towards another leg downwards, with support likely around $1085 and the key $1077 level (July low).
Alternately, a close above $1095 would point towards a more protracted retracement, with resistance likely at $1098, $1102, $1105 and $1111.