Back on came the risk trades; up went the equity markets; up went the commodity markets in general and down went the US Dollar.
Both gold and silver moved higher with silver leading the way in this "risk environment".
If you note the gold chart below, it ran to $1720, the next resistance level noted on the chart, where it then encountered some selling pressure which kept it from getting too far out from that level. I would like to see this market stay above $1725 for at least one bar before thinking it can mount a run back towards $1750 with its first stop on that journey near $1735.
Gold did manage to claw its way back above the upper tine of the bearish pitchfork which should now serve to support the market on any dip lower IF THIS MARKET is going to have a shot at turning the psychology a bit friendlier. For that to occur, it seems to me we are going to see some sort of fundamental spark which would undercut the recent strength in the US Dollar. Traders may be selling the Dollar today but that could all very quickly reverse if today's euphoria turns sour.
Simply put - there is no clear cut trend in gold, or for that matter silver right now as far too much depends on perceptions involving conditions across the Eurozone.
Wax on - Wax off - Risk on - Risk off. That is the story once again.
