Gold has officially broken the October $1,262.80 low (currently $1,258). I prefer to see prices close (at least twice) below a critical level before considering it thoroughly defeated.
Despite the recent weakness, we are yet to see panic selling. Perhaps, gold needs to drop below $1,250 to scare the bulls truly. Nevertheless, we are on track to make a significant bottom within the next 1-4 weeks.
I expect gold to test the $1,215-$1,200 support level. If selling expands, and we get a recognition day, prices could bottom within the next week or two. If not, then they could grind lower into early January. In that event, my maximum target ranges between $1,170 – $1,180. I’ll keep members informed and begin to formulate an entry strategy. Silver and Miners seem to be the better value.