Gold dropped on Tuesday, exercising its negative correlation with U. S. equities to the full extent by dipping below the highly psychological $900/oz level. However, the precious metal is finding support on our 1st tier trend line on Wednesday and has fought back to $900/oz.

The question becomes whether U. S. equities can follow through on yesterday’s impressive rally, or if Tuesday’s surge was merely a head-fake. If the S&P does continue upwards and Gold sinks below our 1st tier uptrend line, then we could witness a near-term crash in the precious metal.

The next few trading sessions will certainly be telling as far as trend is concerned. Fundamentally, we find resistances of $906.42/oz, $913.80/oz, $919.01/oz, and $922.92/oz.

To the downside, we see supports of $895.56/oz, $890.35/oz., $883.40/oz., and $878.19/oz. Gold is currently trading at $900.90/oz.

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