Gold collapsed on Friday after the Non Farm Payrolls showed better than expected jobs growth in July. At 255,000, job creation blew most analyst expectations out of the water. The SPDR Gold Trust (NYSEARCA:GLD) fell to $127.55, -2.32 (-1.79%).

The most important aspect of the gold decline was the lack of a higher high made in the recent surge. In fact, a clear lower high was put in on the stock chart. On a technical basis this is a strong bearish signal for the near-term. It likely signals a continued sharp decline in gold.  Take a look at the chart below to see and understand this. Ultimately, this lower high signals a highly likely correction in gold over the next few months from its current $1,342 down $1,270.00.

Jenny Rebekka