Gold broke 20 month trend line resistance and confirmed the bullish double bottom at 1185/80. As stated Friday, I think we will resume the 15 year bull trend now and I am calling an end to the 25 month bear market. Over night we have tested the 100 day moving average at 1276. This is the next major obstacle and we need a close above here for the next buy signal. We are getting overbought short term now though so profit taking looks increasingly likely. A dip back to 1265/64 could be expected and possibly good support at 1256/55 where a low for the day is likely. Exit shorts and try longs with stops below 1251. Next support at 1249/48 but below here an excellent buying opportunity at 1243/41.
We should struggle again today in the 1276/79 and it may be wise to exit longs but if trying shorts use stops above 1282 but look for strong resistance at 1287/88.