Definitely not a time for the faint hearted, however, if you...

Definitely not a time for the faint hearted, however, if you look at this chart the long term trend is still in tact. A break below 1251, though, not good. A couple of forecasts coming out of GS and JPM on 'tapering' (ie pushing it out further) which usually follows with a gold price rise.

"We have changed our view on gold from bearish to bullish. The impulsive gains from the 1251 low of Oct-15 and break of the 2m downtrend (confirmed on the break of 1330) say a medium term base and bullish turn is unfolding. We look for an ultimate break of the 1433 highs of Aug-28, with potential for a push to 1500/1533 long term resistance. In the next several sessions we would buy a dip into 1309. This view is wrong on a break below 1251. For those awaiting additional confirmation of a turn, you need to see a break of 1375 (Sep-19 high & right shoulder off a multi-month Head and Shoulders Top).’

To validate his claim that the long-term bull market for gold remains intact, Curry highlighted the long-term monthly logarithmic chart for gold. He identified an uptrend line which the price of gold is about to come into contact with (see below). “This is still a long-term bull trend," said Curry. “There has been no damage to its long-term uptrend which began back at the turn of the century.”

http://www.financialsense.com/contributors/clif-droke/gold-vs-wall-street-s-program-traders