New Bearish Consolidation for Gold?

The near-term pattern and technical set-up earlier this morning in spot gold -- which corresponds to the SPDR Gold Shares (NYSE: GLD) for ETF traders -- pointed to an upside thrust to test key near-term resistance at $810.65 concurrent with a test of key near-term euro/$ resistance at 1.4450/80. While the euro did rally a touch above 1.4480, the rally did not sustain, which helped to thwart the rally attempt in spot gold, which failed to claw its way above $810.00. The failure of gold to hurdle $810.65 and its intraday decline to $800 could be significant technically because it argues that the pattern off of yesterday's low has carved out a wide consolidation area between $810 and $790, which could represent a new bearish consolidation area prior to another leg down to $750. In other words, $810.65 must be hurdled prior to a break of $790.