Gold needs to hold these levels if it's not going to see substantially lower prices. However, I am mildly encouraged by the RSI (Relative Strength Indicator) momentum indicator in the top panel which is sporting a positive divergence from price.
In a world awash in central bank liquidity Gold's price action is testimony to the incredible deflationary forces that still persist in the global economy. The fact that interest rates have been rising also does not help Gold's cause but I'm not of the opinion as many others are that rising interest rates are the primary reason for the yellow metals persistent fall over the past few months. We shall see what happens.
Now, here's one of the reasons why I think my prediction of 1860 on the S&P may not occur before year end. The "spanner thrown into the engine" may be coming from China: