The bottom fell out of the gold price with a near-vertical drop that also left an open gap in its wake. Sudden drops like this happen as there are “No” daily trading limits in commodities.
The only question is how deep gold can still go as downward spikes like this can be a very bullish sign. Stocks/Oil exploded, but the gold and silver price headed south.
There should still be more upside, as the pattern so far, does not suggest a long gold price decline. Besides that, the $1600 price range is a much better resistance level than $1535 is.
The full moon is just a few days away so that can act as a reversal time period. Gold already recovered about $10 so that is also a good sign. I see it as a warning that later on when stocks start a real bull market that gold will decline as stocks supply the real competition for gold-related assets.
The 2011 gold peak is a prime example of what can happen.