Sell in May and go away until Labor Day, is there any truth to this? Specifically with the Gold market? Maybe...
Mid term, Gold is in a down trend with lower highs since the top back in August 2011. It may retrace back to the low in December if the trend continues. No one really knows where the bottom will be for this short term bearish Gold market.
Should it break the December low, the next significant support low is back in July 2011 just under 1500. That will be a 100% retracement from the major summer rally last year.
RSI and Slow Stochastics are in the oversold area which typically rebounds within a few days. If the slow stochastic embeds, Gold will be heading lower. Many see this a a buying opportunity and will be accumulating.
This consolidation period will most likely last for the next few months. The seasonal demand for Gold in August / September may be the catalyst for the next uptrend. ?