Things looked great for gold at the ned of last week, closing over $1000 for the second time in seven months. The picture became a lot more clouded this week, however. Let’s look closer.

Looking over the past days, Friday’s high made a double top with the highs from July ‘08. Monday was an inside day and a doji, so there was a breakout setup for Tuesday, and a large breakout day selloff. Today it was unable to hold above unchanged, in spite of strength in other commodity markets (crude oil was up 6%). At the close, it was able to hold above Fibonacci support at 949.80. This level lines up with $950, which has “round number” significance.For tomorrow, trendline support off the last two swing lows held. Momentum is giving a buy signal, but MACD is verging on a bearish MACD crossover.The next days should clarify whether the bull is still alive here, or whether the $1000 double top holds and lower prices continue.

Daily Gold Futures Chart

Daily Gold Futures Chart

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