Short term, gold prices broke below the level of the move from $253 to $1923 and are now retesting former support now turned resistance. As of this week, commercial hedgers and professional speculators are short gold , while the only longs in the market are index funds. This type of market positioning can lead to short-covering rallies, but does not signify a market bottom.
Long term we are sellers of gold unless buyers can push prices upward first through $1088 and then $1200 on a monthly closing basis. The current price trend is still down with long term price targets of ~$975 and then ~$620.