Gold has been in a long term down trend since it hit its all-time high in September 2011 at 1920.80. That strong rally was probably caused by a series of factors that are unlikely to repeat themselves any time soon. Credit squeeze and flight to safety are no longer ongoing concerns and demand driven by electronics manufacturers has begun to fade due to the use of substitutes. However supply has not fallen, large price increases would have encouraged producers to increase production and that greater capacity is still being used. According to The World Gold Council total demand dropped in 2014 compared to 2013 by 4% whereas supply showed little change.
Looking at the day chart we see price just under the resistance of the bottom of the Ichimoku cloud, ADX above 30 and MACD below zero, all indicating this may be a good entry point to go short again.