Gold is testing support at 1530-1550 an ounce and may be showing a trend change. Point & figure charts are showing a bearish target for the SPDR Gold Trust Shares (GLD) of 144--an 11 point move to the downside--while the bearish target for the gold spot price is $1370. The Ichimoku daily chart for GLD shows a strong sell signal with the price falling below the kijun-sen, the tenkan-sen, and the kumo. Additionally, the chikou span and senkou span are bearish. With risk to the downside, I would suggest hedging your long gold positions, or moving from gold to cash on a bounce. The US$ has been strong and that partly explains why Gold is heading lower. (Click on a graph to see a larger version.)
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