NEW YORK ( AppreciateGold.com) -- Spot gold is again under extreme duress on Monday as bullion bulls continue to bail. "Sell now, ask questions later" appears to be the story here today.Spot gold was down $127.30 to $1,349.70 per ounce. The SPDR Gold Shares (GLD)closed down $12.64, or 8.8%, at $131.31.
From a technical standpoint, gold's failure to take out the $1,800 level likely weighed on sentiment. After trading sideways from approximately $1,550-$1,800 since September of 2011, the market finally broke out to the downside not only breaking out of the range but leaving a confirmed double top in place on the monthly chart. This has likely led to a huge amount of technical selling. Likely there was a massive amount of sell stops below the previous trading range, and the price action since those stops were triggered has been swift and severe. In fact, gold has fallen so far so fast it is likely that even some of the more steadfast bullion bulls have now thrown in the towel.