Adding to the trouble for gold is that some market observers believe the Fed charting a course for more rate hikes, though at a measured pace, in 2016 sets the stage for further upside in the U.S. dollar. Of course, that would be punishing for gold and other commodities, which are denominated in dollars.

“Turning to the chart, we see the February Gold contract regressing after testing the 1085.00 resistance level. Prices have tested support near the 1050.00 support level in early trading. A close below 1050.00 may result in a test of the $1,000 price level,” adds Options Express.

SPDR Gold Shares

Tom Lydon’s clients own shares of GLD.