If something can't go up on good news, then there's only one other way it will go.
That might just be the story for gold as it fails to catch a respite even as the dollar has slumped by quite a bit in European morning trade.
Gold had a bit of a scare earlier as it fell to its lowest levels since July last year in Asia Pacific trading, slipping to $1,760.67 before keeping closer to $1,770 currently.
For now, support from the 30 November low and the 50.0 retracement level of the swing move higher from March to August last year is the key level to watch for gold.
That support level rests in the region of $1,763.51 to $1,764.80.
A firm break below that is likely to accelerate declines for gold, with little in the way of a push below $1,700 next if the chart is anything to go by.
As much as gold has key fundamentals working in its favour over the long-term, this is not a chart that is doing much convincing. A flush lower may yet do gold some good in trimming stretched long positions before dip buyers step back in.
But given how things have developed as of late, there are likely better opportunities elsewhere (copper, silver, platinum) if one is to bank on the commodities 'supercycle' over the next few years - at least at this point in time given gold's predicament.