Greetings!,

After four straight days of trading higher, gold took a breather, a very soft breather, losing a nominal amount. There are two fundamental reasons for this, really two sides of the same coin.

The U.S. equities markets, after a huge drop, rallied back and investors moved in to take advantage of the rise.

The European crisis drew money away from gold/precious metals so traders there could cover their shorts in a number of areas. It's wise to keep our eyes on the rapidly developing situation in the euro zone.

I don't normally shrug, but today's fundamentals make it impossible not to.  

As always, wishing you good trading,

       Today's video 

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Proper Action

 GOLD & SILVER :

 Gold: Maintain long in gold @ 1650 avg Stop below 1623 

Silver:  Maintain  Long @ 32.46 avg Stop below 30.52 

MARKET FORECAST

Gary S. Wagner

Gold & Silver: On a technical basis we continue this current wave, which is all contained within a triangle correction. The identification of a triangle correction is fairly straightforward in Elliott wave theory. Simply put, it is composed of five primary waves that conclude with a final thrust wave. The key to identifying this type of correction is a narrowing in the range, which can be defined by rallies containing lower highs and corrections containing higher lows. The thrust line is the concluding wave within this pattern and can be identified as it breaks through resistance and moves to new higher ground. Today's video will discuss our count in detail.

Gold Chart

 SILVER Chart:

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