Gold Chart

A quick update for those interested in observing the price chart... the metal bounced from support near $1280 on continued Ukranian unrest. That continues to reinforce the significance of the level. If it goes ( on a closing basis ) watch for a significant round of speculative long side liquidation.

One thing I am noticing is the series of LOWER HIGHS being made in this market. Each time it manages a pop from Ukraine events, the high is made at a lower level. That tells me that the events there are losing significance in the mind of many traders and that it is going to take a much more severe flare up in tensions to enable the bulls to push past chart resistance levels. The region near $1320 should hold any bounce to keep the picture bearish. A push through that level, particularly if it can breach $1330 or so, would spook a lot more bears. If not, they will use the rallies to sell.

I am watching to see if gold can manage to sustain any sort of closing price above the $1300 level.

The HUI is stronger today holding above support between 218-215 but remains well off any resistance levels.