In many respects it does NOT. What is similar is that on Friday we got below $620 in somewhat violent fashion and within striking distance of $600. But the key distinction to the failure at $650 in September was the rapid downward knee jerk back to $600 vs the slower decent from $650 we've seen thus far this month. The way I read RSI and Bollinger leads me to believe that there's room to the downside toward the $600 area IF the dollar can drift a bit higher over the next few week. Who knows what kind of games were being played on Friday.
AM I SHORTING IT TONIGHT?? I don't have a pressing need to jump on a gold short unless I see sudden negative momentum, or a catalyst to grease the next leg lower (eg. slide in oil; Ahmadinejad receives Dr. Scholls for Christmas, starts Jellin' and makes nice with everyone; dollar rebounds).
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