The gold price recovered last week following a sell-off that began towards the end of October. Over that time, gold fell from just north of $2,000 per ounce, breaking below support at $1,950 before it found support around $1,930. At the end of last week, it was once again closing in on $2,000, but has sold off sharply overnight. It’s possible that the current decline will result in a useful consolidation. If so, then the bulls should soon find their feet, together with enough upside momentum to drive prices back above $2,000 once again. If so, and should that level holds as support, gold could take off to the upside. As the chart shows, prices are holding well above the old downward-sloping trendline. We’ve also seen a pull-back from overbought levels as illustrated by the dip in the MACD. Interestingly, the MACD has just started to turn higher. But another failure to break and hold above the $2,000 resistance level could lead to a bullish capitulation, with the prospect of another sharp sell-off.