The bulls are having quite a bit of trouble with the pivotal area of 1550-1555.
Today makes the sixth try. Perhaps they can take it by the end of the day.
As you know our intermediate target has been 1565 to 1570 since mid-January.
Let's see if they can take that price level and hold it for more than a day.
If not they may have to back up to big support at 1525 to 1530.
IF a 'significant' event triggers a selloff then we are looking into the 1400's at least with a 'must hold' at 1450. Look at the turmoil that a relatively symbolic event like Cyprus was able to stir.
This is what I would call a 'fluffy' market.
I would not bet on that just yet. The Fed continues to ply their cronies at the Banks and Funds with $80+ Billion of easy money per month.
It is a bubble, but bubbles are notorious bear-busters since they have an internal logic of their own.
I think gold is fundamentally undervalued relative to the financial and currency risks, but values are not very relevant to the kleptocracy at this time of papier-mâché economies, except as a rival to their control frauds and a reflection of their general perfidy.
In that sense Cyprus was a watershed event, despite its seeming insignificance, as the MF Global style confiscations of the oligarchs become official government policy.
