gold tonight

Another interesting night awaits. It's been holding well at the top of the descending triangle line from the first spike last week to 751. 732 has proved to be a strong base.

USD has now had it's 4th attempt to pierce 88 on the Index without success, and last night it went up on low volume - will it turn down now. All it takes is some positive news out of Euro - if that is possible, and then she'll start coming down which will accelerate on bad US economic reports tonight, leading to maybe an emergency rate cut as 775 on the SPX needs to be held at all costs otherwise the next energy zone is all the way back to 525 - that wouldn't be good for us here.

Onto Gold though - some rogue element or group smashed it and Silver back down after they sliced cleanly through 750 - that would've massively reduced the resistance at that level I'd imagine for a move sometime this week, with a close above 768 a key. Fingers crossed - coz I'm still exhausted from this Gold correction.

By the way, what would you do if you were a short sitting on massive profits from your Gold contracts, with the threat of being called to deliver and with the knowledge that the Chinese, the Saudis and others are buying up gold at these levels - I'd be nervous about losing my profits from some big sudden move up - which we've seen in both directions lately, even last night. Interesting to think on what I'd do if I was on the other side.