I last posted that gold was forming a double top and would sell off in the intermediate term, but trading of gold is holding very strong at the current time and is forming a breakout pattern that may be resolved to the upside. The DOW is barely holding the 200MA today and so far there is little follow through momentum. Also the Euro has seem to hit some resistance and is trying to hold the 20MA. If these jittery markets reverse to lows and the Euro can't maintain this momentum then the rising wedge pattern that is forming in gold will easily breakout past $1250.I am not saying that this will happen but Gold is a great sentiment evaluator at times like these and is not seeing any significant selling so far. If the markets and currencies continue to bounce, then I would expect this breakout pattern to fail.
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