Gold tumbled yeasterday, breaching support around $1320 to drop as low as $1308 before finding some support. This morning, gold is trading near the lows and close to the 50 DMA after a tepid bounce off support.
It is clear that gold is correcting more deeply than we originally thought and the Wave 1 rally looks to have ended at $1391. The dollar has rebounded sharply from lows near 79 and oil and equities are also recovering well after a short sharp sell off.
Gold has retraced 50% of it's recent rally from $1238, however we expect further declines as an ABC correction unfolds.
Support can be found at $1307, $1295-$1300, $1280, $1275, $1250-$1255, $1237-$1240, $1220-$1225, $1210, $1200 and $1180. A break of $1180 would have serious bearish implications for gold and suggest a decline to $1000-$1050 in the short term, though this now looks unlikely.
Resistance can be found at $1318-$1322, $1330-$1332, $1340-$1342, $1352-$1354, $1392-$1395, $1400, $1420 and $1435. The breakout above $1300 suggests an end to the intermediate term down trend and that a significant rally is now developing.