New steep downtrend just in birth right now, parallel to June crash. Written 2012-08-06 17:37 BST.

Gold is now in a steep downtrend roughtly parallel to the one that marked the 28 June crash. Just starting, maybe there is time to abort it but every hour gets a little worse:

Right now, the bottom of the little downtrend channel I have drawn is at $1240, so if price dropped right now to the bottom of the channel it would hit a low of $1240. However, the slope is steeply downward, so if the channel continues it could go much further, to make a double bottom at $1180 or to meet the channel floor at $1098, close to the 50% retracement of the bull market at $1087.