Moment of Truth for Gold: Ilczyszyn
Gold consolidated towards the upper end of its range yesterday, after bouncing off of a trend line that starts with the Jan. 5 low.
With the current price action against $1,680, gold is now bracing against a resistance trend line from the late November highs.
This is rare, but as we head into a the European Central Bank meeting Thursday and deal with a slightly higher U.S. unemployment number, the safe-haven appeal of gold has become slightly brighter.
At this point, close above $1,685, and furthermore $1,700, would be very bullish.
We have seen higher lows for two consecutive sessions, and a move below yesterday's low at the $1,660 to $1,658.20 pocket will be negative, but only a close below $1,653.20, and furthermore $1,644.50, would be very bearish.