Gold had huge resistance at 1398 in June 2013. It held and we saw Gold plummet to 1180. A similiar situation seems to present itself right now. Gold is trying, but unable to rise above 1298 so far. And we hear, that speculative short interest in Gold is huge. But this huge short interest is commited, the trade is made. It’s up to the traders on the sidelines, the not commited traders to move the price. And the charts paint a different picture at 1298 compared to 1398. I see higher lows (and higher highs) in Gold, I see rising cloud support and I know, there is huge short squeeze potential (yes I got squeezed at 1230 and man, was I glad, I had my stops in the market, waking up with Gold trading up to 1258 in the Asian session).
Today Mr. Bernanke is speaking ….
again and it might be, that it’s that lottery again: Slam or Squeeze +/- 50 in a minute
Until then nothing is decided, gold will drift around with a downward bias for the moment, trading up again into the US-Session and in hindsight everything will be clear again.