Gold Short-Term Weakness Targets $1600
Gold is weakening once again beneath its 200-day average. The move resumes downside pressure following gold’s latest reversal which was triggered by a DeMark™ exhaustion signal.
It still worth remembering the dramatic $103 one-day drop which will continue to offer psychological pressure for investors and traders.
Continue to watch for a break below $1600 (psychological) and $1567, thereby offering further setback into $1522 (29th Dec swing low).
A sustained confirmation beneath here would resume risk for a much larger decline that we have been anticipating. Keep in mind that our cycle analysis continues to highlight initial downside targets into $1460 and $1300.
This would likely trigger a temporary, but dramatic setback that would ultimately offer a unique tactical buying opportunity into this coming summer of 2012.
Only a sustained confirmation above $1810 will put the bearish ...