Gold prices have been falling for two weeks and the drop has just accelerated to produce an extension. The chart shows the story over the last few months. There was a lengthy run-up in price that ended in July and August with two attempts at the $1400 level, both of which failed and both produced top extensions. The subsequent two-month trading range then produced a compression that marked the start of a decline into a lower range. That compression was re-visited in the normal way as part of the new lower range and weakness then resumed to end with yesterday's bottom extension.
This new signal is quite short-term in nature. We don't usually distinguish between signals except to state whether they are daily-scale, weekly-scale and so on but there are other differences that we watch. This signal comes from quite a short price history and so is less likely to produce a good bounce, let alone a major low point. it is possible that the price will rally by $30 or so but it may be that this signal will only mark a pause in an ongoing decline. We will watch for more clues but we will not buy gold yet.