Where is the gold price headed?

It should be apparent to everyone that gold remains firmly entrenched in a nasty bear market.

The gold price is unable to develop any positive upwards momentum.

As we all know, "the trend is your friend."

Back in January 1980, when gold hit over US$800, anyone who suggested that more than 20 years later gold would trade around US$230 would have been shouted down by the masses. Similarly, when oil recently traded at US$150, anyone who suggested that a few years later oil would trade below US$30 would have been shouted down by the masses.

So here goes.

Technically gold is next headed to test the 2011- 2016 bear market low. Then follows a break below US$1000 and US $800 comes to mind. If broken we are then looking at the 2008 GFC crash lows, followed next by US$450 and then US$230.

Not a pretty picture, is it?