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.