Gold has bounced off the slide earlier this week, which happened on options expiration day, not surprisingly. But the bounce is weak and gold is struggling to regain the $1180 area, which was key support.

Next Tuesday seems to be a key turning date for equities and gold. Once scenario is gold makes it up to $1185 or so then heads south again. Or it could hit its 200-day moving average around $1150 and move up into mid August. But either way, it seems like gold could take a hit later in August so be cautious.

There are some indications that equities are nearing a turning point that could see big lows into October. Be extremely cautious with equties and by association, gold stocks.

As mentioned recently, in fact right before the big decline this week, the banks could make every effort to take down gold prices before position limits come into play. Since the end of year is traditionally strong for gold, July and August are the last chance for easy wash-outs.