Gold broke to new highs yesterday as the dollar followed through to the downside. This morning we are seeing some retracement of that move, which is a perfect set up.
Of course, if the dollar builds on this move to wipe out $83.40 and then goes higher, the trade is off and we wait again. But I will be expecting the Pivot to hold resistance 82.35 and continue lower. As it does, Gold should run and should Silver.
In fact, they are holding up very well this AM after the Japanese intervention news – which historically doesn’t work for long. We’ll see.
Trade the extremes!
Foo
Front9 Trading, LLC 