December Gold posted a weekly closing price reversal top, indicating the possible start of a substantial decline. This type of pattern typically indicates the start of a 2 to 3 week break equal to at least 50% of the last rally. This makes $1212.00 the next likely downside target.

Money flowed this week out of T-Bonds and Gold, indicating the slight alleviation of concerns about an economic slowdown. With traders shedding the so-called “safer” T-Bonds, the proceeds may be sitting on the sidelines, ready to be invested into equities.

A rally in the equity markets is likely to keep the pressure on the gold market as both asset classes compete for the same investment Dollar. It looks like a return to the classic battle between hard assets and paper assets.