With the USD index and US equities selling off, gold has been given a bit of a breather and is up marginally on the day. In the overnight session, it traded down to psychological support at $1,200 before speculative profit taking and Asian physical buyers lifted it off its lows. Overall, speculators are still on the bearish side of the precious metals with the latest commitment of traders showing that spec positions in gold are at their lowest level since last December. Yesterday’s price action saw gold trade down to the very significant support of $1,180; this is now a triple bottom and a level gold hasn’t been below since 2010. Silver has been consolidating around $17 and will look towards gold for guidance on its short term direction.