It might be concerns over economic weakness, inflation concerns over next week's PPI data, or a weakening dollar, but the Gold Index is the only bullish sector of the day, up 4.06%.
Gold Index Point and Figure Chart
Part of the action in gold could be fundamental, but part of it may be technical. The Gold Index is sitting at its bullish support line that has been in place since February. The sell signal given in June has supply in control of this sector, but bullish support lines tend to be tough to crack. With XAU currently at $55.50, it is 50 cents away from reversing back into a column of Xs. If the sector can climb to $57, it would give a buy signal that would cancel the current bearish price objective of $43.
Placer Dome Daily Chart
Placer Dome (NYSE:PDG) is also testing its bullish support line, but holding at $10 is even more important for this gold stock. If the stock falls to $9.50, it would give a sell signal, and cancel the bullish price objective of $17 given off the triple top buy signal in January. With the stock currently trading $10.95, it is still 55 cents away from reversing back into a column of Xs, and keeping its up trend alive.