Gold's Recent Decline Is a Major Technical Fail on the Charts

Gold continues to trade range bound around the key $1,200, with some volatile moves. Tom Vitiello of Aurum Options Strategies tells TheStreet's Jill Malandrino every time gold gets through a key technical indicator like the 100-day moving average, other factors start to weigh on gold. The strong move in the U.S. dollar and positive housing data were the catalyst to reignite interest rate hike speculation. This makes gold bulls nervous because as interest rates move higher, the yellow metal moves lower. In addition, the FOMC minutes will be released on Wednesday and while language is not expected to change, it could spook traders in terms of the timing of a rate hike.