Right now, gold is in the middle of its range and there is no real data to look forward to. On Tuesday morning, investor confidence numbers out of Europe beat expectations, but traders will be eyeing the full slate of data on Wednesday, including the U.S. Federal Reserve's Federal Open Market Committee meeting minutes.
Resistance will continue to sit at $1,619, but use the retracement levels at $1625.8 and $1632.7 as potential major resistance for a bounce. A retest to $1,603.5 will be very discouraging and likely restart additional selling.
(Read More: Is 2013 the Year of $50 Oil and $1,200 Gold?)
We are looking to sell the first retest of the upper resistance levels. Again, we want to point out that the technical "death cross" has been fired, and the market is trading well below the 200-day moving average. These are two important technical indicators, and they both point toward more pain ahead.
See Peter Schiff: Gold's Pain Has Just Begun