The SPDR Gold Trust (GLD) is down about 6% from its June high at 123.50/52, and down about 2% from its violation of key near-term support at 119.03. As we noted to subscribers late last Thursday, a break of that support level will argue that the GLD is entering a long liquidation "event."

Although the correction has been sharp and quick, my work argues for still more weakness into a minimum target of 115.40/00, if not into the 114-112 area prior to a resumption of buying interest.

 

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.