Lowest levels for gold since July

Lowest levels for gold since July

A surprise rise in the Markit PMIs and a notable rise in price pressures led to a sharp drop in gold that broke a key area of support.

Bids near $1850 have supported gold since September and a test earlier this month held. But the area gave way in the past few minutes in a quick $20 drop in gold.

This is a level that everyone has been watching and technically it clears the way for a fall to $1800 (200-dma at $1795) or even $1750.