Opened near lows and raced higher.
Gold gapped higher over the weekend, opening at $1652.20, trading to a low of $1651.92, before racing higher. The low was above the high from Friday at $1649.96.
The run to the upside reached $1679.70. That took the price to the highest level since February 7, 2013.
Since peaking today, however, the price has sold off toward the mid area (and even below) of the day's trading range. We currently trade at $1659.77. The decline has occurred despite weakening stocks which has me wondering if the stocks have gone too far, or gold has gone too far, too fast?
Perhaps the clue that will be most telling is if the price can stay above the gap from Friday between $1649.26 and $1651.92. If the price can keep above that gap, the buyers are still in firm control.
If the price moves below the $1649.26, the technical view should shift toward more downside corrective probing for now (in which case I would expect stocks to rally too).
