The daily candle charts of Gold and GDX are included in the image below. (Note that Gold is not updated today). Gold which has traded as low as $1084/oz today, has support in the $1080/oz to $1100/oz zone. Meanwhile, GDX after gapping lower today found support around $13.50. GDX has good support in the $13.00 to $13.50 area. Gold and gold stocks are very oversold and have reached levels at which a bounce could begin.
While Gold and gold shares are likely to rally in the days ahead, the overall prognosis remains decidedly . Consider the monthly candle chart for Gold . Monthly charts carry more weight than weekly charts and much more weight than . Gold appears to be breaking down from the pattern formed in recent months. After plunging in July, Gold rallied in weak fashion and failed one last time at major resistance of $1180/oz. The flag projects to a downside target of roughly $1035/oz. Ultimately, the bear market could end at one of the two targets shown in the chart, $970/oz or $890/oz.