Gold is fighting back from Monday lows, which almost saw a retest of the psychological $900/oz level. However, volume to the upside has been weak, indicating bulls don't feel too confident about the near-term future of the precious metal.

We view yesterday's pullback as a significant movement since it occurred at the collision point of two important uptrend lines. Therefore, it seems a retest of $900/oz is imminent. Investors should keep an eye on U. S. equities.

Gold may take its cue from the behavior of the S&P futures since the precious metal is heading towards a highly psychological zone. If the S&P futures can't hold onto their own psychological 900 level, then gold may find the momentum to head south of $900/oz due to their positive correlation.

Encouragingly, the Dollar is depreciating across the board right now, which is normally positive for gold. We maintain our negative near-term outlook on gold due to the aforementioned analysis.

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