What worries us about gold is the forming of what appears to be a descending triangle. Naturally, we don’t want to see that, but if that bottom end near $2,000 falls out, the fall could be a drop to $1,835.
On this weekly line chart, gold is consolidating what appears to be a major breakout from a broadening formation. The top of the formation is the key $2000 price zone, making this breakout a very significant event.
When you're over an 18-week average and you come back often, the market will stall there figuring out what the next move is. When we look at the daily bar chart today, you had an outside day to the downside.