Gold remains extremely weak. We need a daily closing above 1108 to say the low is in place temporarily and a bounce back up is possible. The 1080 level is critical support on a daily closing basis and it remains possible that gold can break to the downside moving into September if the July low gives way.

Since the Monthly Bearish at 1155 was elected on the closing of July, typically we would see a rally back to that level to retest it before we see lower prices. A two month reaction rally into September would be followed by a renewed decline into the Benchmarks.

We can see how gold is NOT being manipulated for it is the entire commodity sector collapsing. China’s growth days of 12% annually are over and their numbers reflect indeed an economic contraction. Demand for commodities has declined and this is all part of this DEFLATIONARY wave underway. When you open your eyes and look beyond gold, you can see the trend of the whole.