Gold threw us another curveball yesterday, reversing back to a negative correlation with the EUR/USD and GBP/USD. Is it possible the precious metal's normal negative correlation with U. S. equities is coming back into play?

The price of Gold deteriorated over the last 24 hours before testing March lows and our 1st tier uptrend line. As we stated previously, we believe our 1st tier uptrend line to be the final straw for Gold's uptrend.

If this trend line can't hold, we could witness a rapid selloff. The S&P futures reflect the significance of the moment as the knock on the door of 2009 highs.

If the S&P futures leap through their highs, we expect Gold to fall through its March lows and possibly the highly psychological $900/oz level.

Therefore, if Gold were to recover and reinstate its uptrend, now would be the time. However, since we're seeing some improvement in economic data globally and political leaders are pushing an optimistic attitude at the G20 Summit, it's hard to believe we'll see U. S. equities nosedive in the near-term.

On the other hand, investors could be waiting for America's release of its official Unemployment Rate on Friday before deciding whether to test $900/oz.

Fundamentally we see resistances of $914.54/oz, $916.98/oz, $919.32/oz, $922.45/oz, and $924.92/oz. To the downside, find supports of $910.61/oz, $908.36/oz, $905.56/oz, $902.42, and $898.54/oz. Gold is currently trading at $913.00/oz.

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