The market breaking down below the $1680 level could open the possibility of a further slide lower, perhaps down to the $1800 level. I do not have any interest in trying to buy gold in this environment, especially as the Fed Funds Futures Rate futures market is starting to price in further tightening. This would work against gold as it makes the US dollar stronger, makes interest rates rise, and suggests that you can earn a positive yield holding paper, instead of paying to store gold.
Pay close attention to the US Dollar Index, and of course the 10-year yield, because both of those have a major influence on what happens next. I am going to fade rallies at the first signs of exhaustion, it would not be a buyer of gold until we get a daily close well above the 50-Day