short-term trading thoughts

At TDA's suggestion, this thread is intended to look at what might happen to gold in the short-term (next month, or so).

It's hard to assess it on a purely technical basis, because of what's happening out there in fundamentals-land. The fear at the moment is palpable.

Having said that, on a purely technical analysis, gold is looking short-term overbought and should now retreat back towards at least it's power uptrend, which conveniently sits at about the middle of its channel.

What we don't have just yet is divergence between the technical indicators and the price: the technical indicators are still making new highs at the same time as the gold price. So, while you could lighten up your short-term positions, you could keep some skin in the game to wait and see what happens to these indicators when gold inevitably tries to get back above $1,000 early next week.