What's Next for GOLD?

After breaking its support around $1075 level, GOLD reached below $1040.  Recently, it made a nice retracement back to its resistance level at $1075.  GOLD should have difficulty breaking this resistance level at least for now.  That would mean GOLD will
trade lower and should reach its critical support at $1000.

Let's check out GLD to see how it has been doing past 3 months.  There is a downward resistance line forming for past 2 months.  Although this resistance line is not strong due to its short existence, but if it continues into next couple of months, it will turn into a major downward resistance level.  For that to happen, GLD must continue to decline and with weaker GOLD market, it has a high possibility.

In looking at a 3 year chart of GLD, there is a clear critical support line at $100.  GLD seems to be headed that way and should retrace to $100 level.  It should have difficult time breaking this critical support.  As long as the market condition does not get worse, I expect GLD to bounce from this support if it is reached.

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