In early trading for April 16, gold prices have moved back up to near $1380 an ounce. While the liquidation of gold will continue it is not unreasonable to think that the sell-off of Friday and Monday were "overdone" and now gold will have a bounce before selling will resume.
There will be some optimists who will try to do some bargain basement shopping, but we won't know for several weeks if indeed $1340 an ounce was the basement for gold.
Further declines are still possible. But so is a bounce back to $1400 or even higher in the next few days. This might be called a dead cat bounce. The expression comes from the horrid thought that if a cat fell from the top of a skyscraper it would bounce after hitting the sidewalk. (Sorry if that offends anybody.)
I would approach the market with caution. I also wouldn't do any buying, and if you thought about selling, I would sell on any short term rally because those rally's might turn out to be a false or fake-out rally or a suckers rally.
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