OK, so $1265 wasn't the bottom for gold and I missed the bounce, however, there was a good opportunity to go short again on this based on a simple backtest of the previous support (breakdown) level at $1268.9 (I did post on the POG comments that I intended to short this here).
The next major support is at $1157 and is shown on the weekly chart to the left.
The next major support is at $1157 and is shown on the weekly chart to the left.
Here we see that $1157 is actually a double support and it's therefore really quite important that it holds or it could go a fair bit lower quite quickly - it's the weekly low from July 2010 (which formed a weekly hammer which resulted in a breakout to the all time high) and also the 61.8% Fib of the entire move up from $682 lows in Oct 2008.
Ultimately, this could go lower than even this level but we'll concentrate on this for now.
Ultimately, this could go lower than even this level but we'll concentrate on this for now.