Gold bounces $6 after a $50 drop since the start of the month
May has been a miserable month for gold.
It closed at $1268 at the end of April and fell as low as $1214 on Tuesday. It finally found some support there as it bounced from the January-March trendline.
But it's been a mediocre bounce given that it came after 8 straight days of declines.
What's next?
There's an element of wait-and-see at work. Tomorrow is the only top-tier US data of the week. The calendar features CPI and retail sales. If the numbers are strong, that trendline is in grave danger and it would mean a move down to $1200, if not lower. If the numbers miss, look for at least a small further bounce to $1240.
