Critical Time For Gold
Gold had a nice bounce on Tuesday,pushing as high as $1,258 before seeing a little selling pressure but stillmanaging to close at $1,253. On Wednesday with the markets closed forIndependence Day, gold got to $1,263 in the Globex session.
The real question - is this adead-cat bounce or has gold bottomed? The next couple of days will give us theanswers we are looking for. If gold fails from here, then it was just a dead-catbounce. If it can hold the recent lows and build on the rally, the bottomscould be in.
Today and tomorrow bring a lot ofeconomic data, including the Fed minutes on Thursday and the jobs number onFriday. Either or both reports can help answer the question. In our view, thebottoms are in. We are watching with an exit below $1,240.
Contributing tokitco.com
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