Gold has retraced exactly 50% or half of its losses from the recent all time high to last week’s low just above $1460 and is now encountering selling resistance as anticipated. Bulls will need to push price through $1520 to prevent a drift lower back down towards $1500 initially. This will lead to a period of sideways trade allowing the market to consolidate and perhaps shed some of the excess volatility.
Volume is rather mediocre at this point reflecting the relative caution among many players. A breach of $1520 should see volume intensify while a downside break of $1500 will do likewise. An uneasy truce is currently being reflected in the market between bulls and bears with neither side willing to get too agressive at the present time. Things can change very quickly in these markets however.