The rally in the dollar index is taking its toll on the yellow metal.
Aussie dollar could be headed for a major breakdown.
The price action in gold and silver following the recent plunge has been constructive; however, there is a lot of work left for the bulls.
Trading should not be based on trying to predict the future but on taking advantage of what price is doing.
Will spot gold return to the scene of its breakdown in the $1,550 range?
Today's action is all about demand, with dealers reporting inventory shortages.
Should commodity prices continue to slide and the dollar stay on the strong side, gold may have a tough road ahead to heal itself.
Until we see a selling climax, additional downside for gold prices is likely.
Prices for the yellow metal keep falling, yet the bullish fundamentals remain.
All eyes will be on the Fed's policy meeting Wednesday, but gold could pop on dollar weakness.