Of course, as I'm sure you're all aware gold has been in something of a monster uptrend now for the last 10 years. And recently we've seen gold towards the end of last year above $1,400 an ounce.

Human nature being what it is, there's a temptation to try and pick the top in a market that's clearly been running away for years and years. And people talk about it being a bubble and it can't last etc, etc. But those arguments have been going on for quite a few years now from some sections of the media.

Again, no-one's got a crystal ball. All we can do is trade with what the price is telling us. And I think although this year so far has been a tricky one for gold - we've seen the price of gold decline - let's take a step back and just look at the bigger picture.

So what I've got here is the latest leg of that decade-long uptrend in gold.

So, for me, the latest leg started back towards the end of 2008, so, around about November 2008. We can see the trend clearly in place here. And it was only as recently as late November/early December last year that the price of gold hit all-time highs.

So, again, I think even though we've seen a decline since then, when a market's only four to five weeks' offsetting all-time highs it's maybe a little bit too early to be talking for a major correction in that market.

Let's look at what gold did at the end of 2009. The end of 2009 we saw it punch through $1,200 and then it spent the next couple of months just giving back ground and trading back to around about $1,050, so swings of 6 to 10 per cent in the price of gold aren't really a reason just yet to be heading for the exit.

So looking at the bigger picture, for me, the level to watch on the downside is, if we round it up, around about $1,300 an ounce. I think off the long-term charts, if we saw a weakness through $1,300 an ounce - and that's the lows from late October of 2010 - then we can start thinking maybe this sell-off is slightly different to all the other ones we've seen before. But while we're above there it still looks like a correction within this latest leg of the uptrend that's been going for a couple of years now.

Let's look at the shorter-term chart for gold. And we can see for much of this year, almost right from the off in 2011, we saw a little rally for gold up above $1,420 and since then we've had a fairly steady decline. We see rallies bringing the sellers back out. Whenever the RSI on the short-term chart flips into over-bought, the sellers come back in.

So short term the trend for gold, yes, is down in the very short term. But we have to view it, I think, as a correction against the main trend. So I think on the downside $1,300 is the major level of support to watch.

At the moment, I think to shake off this three-week correction, we need to see gold back up through around about $1,380 an ounce. And I think once we've shaken this correction off we can start to look at a move out to fresh all-time highs yet again, out to maybe $1,450 an ounce.

So, in summary for gold, short term still down, but from a longer-term point of view we should view this as a buying opportunity as long as $1,300 holds. And it would not be a surprise to me at all if in the next couple of months or so we saw gold pushing out to fresh all-time highs once again.

That's it for me for this week on CantosCharts. I hope you found it useful and I look forward to going through some different markets again in the future.