Gold last week found sellers against the 100 day moving average (blue line in the chart below), tops trend line resistance, and the 50% retracement of the move down from the July 2014 high. That level came in at 1238.44 area. The lows on the move back down, has taken the price to the lows from December 2013 and October 2014.
The Russian ruble move and the recent stock market anxiety (since reversed) did not lead to any sustained rally in gold. Instead traders got worried about the potential for liquidation of gold reserves by the Russians and others caught in the oil plummet. The fall can also be attributed to lower inflation/lower yields which lowers the attractiveness of gold. All of which makes for trading the precious metal hard from a fundamental perspective. The good news from what I see at least, is that there exists recent volatility, but there are technical levels that traders – who crave the excitement of the moves – can lean against. Buy against the support. Sell against the high. Watch the 38.2% in between for clues and if there is break outside, look to get out (PS, don’t be afraid to take some profit along the way too).