Earlier this week, we wrote why we believe that June of 2016 is the most important month of the decade for the price of gold. Our main thesis was that the gold would decide (read: show on its chart) whether it would enter a bull market or would continue its bear market. We explained that $1291 is the line in the sand for gold. If gold will be able to close for 5 consecutive days above $1291, then it would be the ultimate confirmation of the start of a new bull trend. Otherwise, the bear market would continue, and would send the price of gold to its lower range in its trading channel, which is $1,000.

Today, the second day after we wrote our article, we saw the gold price rallying sharply to touch $1,320. In all honesty, it was the first sign that gold bulls were winning the game. However, a sharp intraday reversal took place, and dragged the price of gold below $1,291.

The most disturbing fact here is the sharp intraday reversal, combined with the fact that the gold price closed the session at the day's lows. That is not good, and, as shown on the chart, this mostly precedes larger declines.

We are open to every outcome, but today's price action is not what gold bulls wanted to see. We remain open for the coming next ten trading days in June.

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