Gold has been in one vicious bear market as you can see from the RSI, which typically trades between 20-60 during corrective phases. It’s finally reached the classic retest phase where it’s going to have to make a choice of the next direction. Defend this level and a meaningful rally, potentially even a final bottom can form or continue further frustrating even the staunches gold bugs. Last month I thought that was all the retest we were going to get but here we are smack dab in the support zone. Part of me also thinks that the $1000 is going to act like a magnet.

It’s going to be interesting, because what you can’t see in this chart is the monthly long term chart which remains very bullish, but jumping in front of that bearishness is equivalent to trading suicide in my opinion.