Gold is breaking down today, and the SPDR Gold Trust (GLD: 122.71 0.00 0.00%) is testing support at its 38.2% Fib retracement. Here’s a chart …
You can see that the GLD gapped lower on Friday and is following through today. Volume on down-days is higher than volume on up days – an indicator of the downside momentum we have here. I think the GLD is going to go test its next support at 112.92.
After that, we’ll see. One of the things weighing on gold is a lack of fear in euro-land. The euro is showing some strength, but it’s about to hit some overhead resistance …
This week could be interesting. We’re in week 3 of gold’s correction. When this started, I explained that if gold followed recent patterns, it could correct for 9 to 11 weeks in all. So far, we are on track and on course. There will be a great buying opportunity coming up. Stay tuned.
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