Why $1040 is an important level because its the bottom of the 4thlarge cyclical degree and also 1.618 of XA move .If price go below that level the next target would be $970 , as per the principle of Equalization which is 1 wave = 5th wave. We assume below $1241 would act as an intermediate support which is 78.6% fib level of BC triangle . Hence for the Gold lovers we assume a Dead Cat bounce till $ 1345-1370 levels. Post that prices might nosedive till $ 1050.
If we go by the Fundamentals, after the shock of the Yen carry trade , we assume rising UK's interest might create a catastrophic effect for the Gold . And looking at the Japan's economy number we assume a massive bond buying might continue in the medium run and today Fed governor has also indicated rise in the short term interest soon .We assume these news might get discounted in the few months i.e before the crowd gets in.
Above analysis is purely for the educational purpose. Investors invest on their own risk..