Gold Popping Higher

As we wrote on Friday, gold hadat least another $20 to rally before it would find resistance. Gold is now up$15 from Friday's low and should start to run into some resistance. The $1,275level should act as the first stopping point for this current rally.

The rally -- whether it's real orjust a dead-cat bounce from oversold conditions --should see some sellers comein between $1,275 and $1,280. That would be healthy for the market and thepattern.

The key to the next move in goldis how the market reacts at the next resistance level and how it reacts to thedip after resistance. We are still cautiously bullish with an exit below$1,240, but the next couple of days should tell the story as to where gold goesnext

By Todd 'Bubba' Horwitz

Contributing tokitco.com

Follow @Bubba_TradingBubba@bubbatrading.com www.bubbatrading.com/ Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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