Now that gold has broken its daily cycle trend line, I think we can assume that the daily cycle decline has probably begun. My best guess is that we will see gold drop into next week's employment report and test the support zone and intermediate trend line around $1,340-$1,350.
We knew this was coming, as gold will enter the timing band for a daily cycle low on Monday, so no one needs to freak out. That being said, daily cycle declines need to make traders freak out to reset sentiment and prepare for the next leg up. So I suspect what is going to happen is that the bulls will try to defend that $1,400 level for a few days, followed by a very scary $30-$40 crash day that will bring gold back down to the aforementioned support zone and form a final daily cycle low possibly on the employment report or the following Monday.