Gold seems to be on a slippery slide for now.  I personally feel that there is a real possibility for gold to reach the $2000 level with a stop on the way up at $1300.  But not right now.  I am posting two charts for today — a daily and a 60-minute.

The daily chart shows that GCQ09 is working in a downward-sloping channel.  I am not a big fan of channels, but it does give a pretty good visual insight as to what we are looking at.  With all of this downside price action there has been no major drop in the price of gold.  There is still downside pressure being applied to the daily chart, but it is in an overextended area of the chart.  Price found temporary support at the midpoint of the move, 921, and is now trying to reach D at  850.

The 60-minute chart shows that price was stopped at the target price, D, for the move down and has bounced off that level.  For price to start higher, the futures would have to exceed 911; above that number, the first price objective would be 917.  For price to restart the downtrend, the futures would have to exceed 903; then, the first price objective would be 896.

For the moment, patience is advised until the next move is signaled, either up or down. (IT)