Gold has retraced exactly 50% or half of its losses from the recent all time high to last week's low just above $1460 and is now encountering selling resistance as anticipated. Bulls will need to push price through $1520 to prevent a drift lower back down towards $1500 initially. This will lead to a period of sideways trade allowing the market to consolidate and perhaps shed some of the excess volatility.
Volume is rather mediocre at this point reflecting the relative caution among many players. A breach of $1520 should see volume intensify while a downside break of $1500 will do likewise. An uneasy truce is currently being reflected in the market between bulls and bears with neither side willing to get too agressive at the present time. Things can change very quickly in these markets however.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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