Gold Stocks Index (XAU) Approaching Major Support

Gold was down today and so were the gold stocks. If you look at the above weekly chart of the XAU index you will see that this market is rapidly approaching a major support area.

I know some of you are short gold stocks which is why I am posting the above chart to alert you to the possibility of a short covering rally once this support level is tested. We still have a little more room left to the downside before the XAU hits support.