Gold Continues Decline

Gold has broken down again as expected (see 7/6/09 blog post). The next stop is the 200dema around the psychological 900 area. I suspect we will see a bounce from that level that will take gold back up to its 50dema, but that level should hold as upside resistance and should coincide with a 5th wave bottom in the dollar. That should be the last gasp of any upside attempts. Once gold rolls over from the next bounce, I expect it will drop precipitously below the 800 level on its way to the October 08 lows.