Investing.com - Gold may be oversold but the bull market for the precious metal has been broken.
Gold was trading up 0.77% at $1,187.50 at 08:30 ET after falling below $1,200 last week as the dollar surged.
Gold is down over 7% on the month; may retest $1,050 after losing strong support at $1,200-$1,210.
The 40-month moving average of $1,231 is considered an excellent trend indicator.
Gold stocks have avoided lows as odds favor rebound in next few days or weeks.
But any pick-up could be seen as opportunity to reduce risk and cash up until sub-$1,080 level reached,