After a more than $100 grind lower since its April peak, gold is facing a major test of confluence in the $1240s:
Gold (Daily)
There are numerous factors occurring virtually simultaneously as gold tests this critical confluence of horizontal support and trend support drawn through the December 2015 and December 2016 lows. A breach of $1240 on a weekly closing basis would be highly problematic, whereas, a reversal back above $1280 would offer strong evidence that an important low has been put in place. Therefore, I am most interested in the Friday close which will serve as both a weekly and monthly close, just before gold begins to benefit from seasonal tailwinds for the next few months.
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