The SPDR Gold Trust (GLD) is down about 6% from its June high at 123.50/52, and down about 2% from its violation of key near-term support at 119.03. As we noted to subscribers late last Thursday, a break of that support level will argue that the GLD is entering a long liquidation "event."

Although the correction has been sharp and quick, my work argues for still more weakness into a minimum target of 115.40/00, if not into the 114-112 area prior to a resumption of buying interest.

By Mike Paulenoff

Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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