It's easy to get tied up in the day-to-day or even hourly charts of gold, but when you stand back a bit the important long-term levels become clearer.
The past year looks remarkably similar to the top formed by gold 2011-2013. Now not exactly the same of course but a descending triangle of about half the size of the one which preceded the carnage (predicted by this blog) which occurred when gold broke it's support then.
Since June 2014 spot gold has been forming what also looks like a descending triangle with a support level around $1180. The lower highs indicated the most likely outcome of this formation. A decent break and close below $1180 should see another $200 fall in gold to at least the $1000 mark. A break above the falling trendline, currently around $1360 can't be ruled out of course and pre-empting either of these moves would be foolish. Better just to sit back, be patient and wait for the break. In gold you do have to be incredibly patient.
Although smaller patterns do provide shorter term trading opportunities such as the recent April/May symmetrical triangle which has pretty much reached its objective. Remember you don't always have to be in the market.
Silver also shows a similar pattern.
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