Gold had been on a tear to the upside. It started in November and continued to a top in February. That move added over 11% to the value of Gold. But it could not extend the gain and left it with a top short of the April 2018 high. It dropped back to the 1300 level and consolidation began.
That consolidation developed into a symmetrical triangle. making higher lows and lower highs as it tightened the range around the 1310 level. Last week ended with Gold at the bottom of the triangle, a seventh touch. It broke down through it Monday and has continued. The target on the break is a move to 1220.
Will it get there? The first test is going on right now. With the price at support at the level where the triangle began, 1278. The next test is in the 1265 area with the 200 day SMA below that at just over 1250. The 1245 area could also provide support, but the bulk of the prior transaction activity would suggest a move to 1220 below that would give greater support.
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