After gold tagged $1392.60 on Sunday evening we warned that conditions were ripe for a pullback after such a large upside move. Since then we have seen gold suffer a sharp downside reversal and there is even the potential for gold to print a large bearish engulfing candlestick on the weekly chart:

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Gold_Weekly

The current sell-off is also offering an important test of the uptrend which began in early January:

Gold_Daily_3.20.2014

While this week's sharp turnaround offers ample cause for concern, price is now back to an area of major support near $1320:

Gold_Support

While there could definitely be some more near term downside volatility ahead, we are fast approaching an attractive buying opportunity on multiple time-frames in gold.