Here is what top Citi analyst Fitzpatrick had to say in his latest report, along with some powerful charts: Gold saw three weeks of indecision just below the important double bottom neckline at $1,790. These indecision weeks were followed by a down week last week suggesting short term losses now. Weekly momentum is also stretched and crossing back down.
A correction down to $1,661-$1,669 could be the danger in the near term before renewed gains later. This is where the 55 week moving average and 50% retracement of the last rally converge. Short term support is at $1,736 and it should be noted that the 200 day moving average comes in at $1,660, i.e. it converges with the 55 week moving average so should provide good support if/when tested. ... click over for the charts and the rest of the anaylsis.