However, a different interpretation is that the metal has simply moved within a broad trading range since last year. What's also interesting is that May price action looks somehow similar to what we had seen in December 2011. Gold had a strong rally to almost $1,800 after that double dip:
Will history repeat itself or at least "rhyme", according to Mark Twain?
Currently it is still possible to setup a trade on the long side with compelling metrics. Assuming you buy Gold at $1,640 with a price target of 1,770 and stop at 1,600 would still result in favorable a 3:1 risk/reward ratio:
Disclosure: Covestor Model Portfolio has no position, but I intend to go long Gold soon.