The great gold bull market is now 33% from its highs following a $55 drop today.
The major support lines ahead of $1300 gave out with hardly a fight as the threat of tapering sends the gold bugs into hibernation. Technically, a wedge continuation pattern has formed and broken down.
The pattern points to losses toward $1200 but the close today will be important. Oftentimes in big breakouts like this there is a retracement before gains extend. That would point to a bounce at least $1322 before the long fall gets underway.
Keep a close eye on gold at the US stock market open as the retail paper traders get their first crack at it.
