Not much has changed in gold as it trades sideways between our 1st and 2nd tier downtrend lines. The precious metal has given us no reason to alter our negative stance and gold certainly has its hands full with the psychological $900/oz and our 2nd tier downtrend line.

We anticipate gold to gravitate towards its natural negative correlation with U. S. equities during critical moments. Hence, the precious metal is still hinting at another breakout in the S&P futures with the back of the uptrend broken.

However, there is always the possibility of gold jolting back into its uptrend should U. S. equities collapse. On the other hand, the precious metal could head lower with equities should deflation worries escalate. In other words, gold's behavioral correlation with U. S. equities could prove unpredictable should the waters boil.

One thing we can tell you, gold has certainly made a commitment to the downtrend with its rapid decline from 4/2-4/6. Fundamentally our $894.46 support turns resistance while we hold our resistances of $897.82/oz, $900.76/oz, $904.26/oz, and $908.72/oz.

To the downside, we maintain our supports of $890.64/oz, $887.21/oz, $884.10/oz, and $880.71 with fresh bottom-end of $877.70/oz. Gold is currently trading at $890.10/oz.

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