So much for a final word. After avoiding the blood and carnage of the gold chart for several days, I decided to take a look. And what I found was mildly interesting. Where the drop finally relented on Monday ($1320 to $1330 area) actually coincided with a trend line that dates back to mid-2005. It was the bottom part of a channel that gold largely stayed within until the spike up to $1900 in September 2011. So, the stopping point made some sense. Now what I am watching is whether that level continues to hold. On the upside, Goldman advised clients to have a stop loss at $1400 for short positions.
There you go, $1330 to $1400 -- a convincing move outside that range in either direction will be telling.
