Following is taken from Trader Dan's post over at JSM (http://www.jsmineset.com/)
"Back to gold the bounce back up and away from $1,100 confirms that level of support and the bottom of the trading range. With the push through $1,120 short covering was triggered among the weaker shorts taking price up into the region where the stronger-handed shorts once again emerged near their former level of defense near $1,130. Bulls will need to jam price through their selling to get the market on track for a test of the high from 2 weeks ago. That level, centered near $1,145 is what stands between them and a push to $1,160.
The bullion banks will attempt to stymie the move higher here at $1,130 and then try to take price back down to the lower end of the trading range. Interestingly enough, gold has been making a series of higher lows over the past 6 weeks with the result that while it is still in a consolidation period or range trade, the range is tightening or constricting. The longer it can hold above the $1,100 level, the higher the odds are that the breakout move will be to the upside."
At the time of writing POG is $1130USD. Much thanks to Dan Norcini for his insight.
Will be very interesting to see what happens tonite in NY.
