June gold was $2.40 lower at $398.80 in midday trade Tuesday as the US dollar index rallied to retest its recent highs on expectations that the US Federal Reserve Board would raise rates off their 48-year low. The market traded as low as $396.30, a near retest of both the $396.20 low from Thursday and the $396.10 low from March 12. We view this as pivotal support, with failure to hold leaving just the $389.00 low of March 3 between gold and a more substantial decline to projected support first at $374.00 and then again at $362.00. June faces nearby resistance at $402.00 and again at Monday's $406.50 high. Recent consolidation is most likely a bear flag or pennant continuation pattern and the head-and-shoulders top between $414.50 and $433.00 is looking more and more like major resistance.