There is support for gold in both the short and medium-term charts between $1,665 and $1,680. If gold falls below these points, it could drop to $1,616 before it turns up. This should resolve itself in the next two weeks – up to or right after the election.
I remind you, nothing has changed fundamentally and the bull market is in play and the current bullion-bank induced drop will soon be in the rearview mirror. Everything is either moving sideways or slightly down. The funds are not sure how to play this up to the election. The polls keep shifting in favor of one candidate, then the other. After the election, the funds will have a better idea of where they want to be – a win for Obama being positive for gold and a win for Romney being positive for the stock market. Either way, the Fed will continue pumping eighty billion a month into the banks and Treasury Market.