Gold has been bouncing higher for a little more than a week and my view is that, as it approaches its gap at $117.95, it will reverse lower. Whether it’ll reach the gap or not remains to be seen, but I shorted it Monday morning with a stop at $118.
Of aid to this trade would be a re-weakening Japanese yen, which I also see as having topped (note the broken trend line).
This will all probably be decided no later than Thursday morning, when the market has a chance to absorb all the news from Japan’s central bank. That “event’ dominates an otherwise very quiet week.
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