The retracement move in gold gathered downside momentum Wednesday, falling in morning trading by more than 2.5 percent and below 1220 for the first time in four weeks. With gold looking to test support from its February breakout, our near-term target of around 1190 appears in play. All things considered, we remain open minded towards the timeframe and ultimate magnitude of the retracement and would generally expect a sharper and more extreme move down (as our yen comparative suggested) to complete quicker. A close below 1190 and we would be looking for another large capitulation reversal over the immediate sessions. 

 

From an intermarket perspective, we will continue to follow the dollar relative to gold as an indication that the retracement move has run its course – or if our longer-term expectations towards gold and commodities in general needs to shift. ….continue reading HERE