Gold is bouncing this morning, up roughly $13. This is a normal reaction to a sell signal. First the market bounces, and then it starts to head lower.
If I see the correct intraday patterns form, I will likely add to your bearish positions in gold and silver as early as tomorrow.
One thing that concerns me is that the stock market is getting very, very toppy. If it starts to turn lower, we could see a bigger bounce in gold than expected.
That would not negate the sell signal for gold; it would merely mean the decline may be delayed.
Naturally, I will keep you posted in detail.
The euro continues to eat away at support at the $1.10 level. Once that level gives way, the euro should collapse to below $1.07. That, of course, would push the dollar higher and the precious metals lower.
Hold all open positions and related stops.
Best,
Larry
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