We received some bad data for gold from our Forex & Precious metals data supplier. Here is the corrected chart and our revised comments:
* Target calculation: 1200 – ( 1350 – 1200 ) = 1050
Gold continues to test support at $1300/ounce. Breach would suggest another test of primary support at $1200, while failure of primary support would offer a target of $1050*. Dollar Index breakout above 82.50 would strengthen the bear signal. Recovery above 1350 is less likely, but would indicate continuation of the rally to $1400/ounce.