Despite being bearish on gold (GLD, quote) for so long, and sounding to many gold (IAU, quote) traders and investors like a old recording stuck in a groove,

even I have been astonished by the speed of this morning’s dramatic collapse in the precious metal. No doubt there will be many reasons offered as to why this has happened – all terribly interesting – but prettty useless after the event – the question now is whether this break away from the long consolidation phase of the past two years is preparing for the next leg down to $1000 and beyond.

$1031.77 is next major support level & given the extent of today’s collapse we may also see some buyers step in at the $1110 level. However, should this fail to hold it’s down to test minor support at $1106.

Anna Coulling is a trader with over 16 years’ experience and founder of AnnaCoulling.com