A test for gold is looming - the $1240 level.If it gets near...

A test for gold is looming - the $1240 level.

If it gets near this level only to be driven lower on close we may see the formation of a double top and a retreat to lower corrective levels .... how much lower is a matter for some contention.

However a push through $1240 with close on volume of $1245 or better could signify that the prospect of a double top as passed - this would place the all time high and beyond in the crosshairs.

So, we could be fast approaching a significant short term technical junction.

Of course, for long term holders this is just "noise" - a blip on the chart in gold's march to higher levels.

Still .... it makes for an interesting diversion along the way.

What are the odds of a double top as we approach $1240?

My money is on a push right through this level (maybe wishful thinking) BUT ....

If the double top becomes a reality .... no worry ... just hang tough and things will be back on track soon enough.

Just my 2c worth.

G/L