Rebound

It's good to see that the support at 961 held up. This was a very important number and a push below it would seriously affect the bulls morale. Gold broke through some necessary resistance to regain a good chunk of yesterdays losses. It now rests close to the next major resistance back into the low 980's at a comfortable 977. Silver has seconded that motion by rising back to the 15.60's. This eases my mind, as recently silver has been a big influence on gold. The two will not seem to make any major moves alone, and silver has been a good leading indicator. As much as it tried early this morning, gold could not gain any serious footing until silver joined the party.

In never ceases to amaze me the critical errors in markets that so many people fall prey to. (Including even myself) The worst of which, emotions. Whenever gold is down the overwhelming mentality that gold is going to continue plummeting forever is mind boggling to me. The prices that people will so easily get shook out of holding a position on is just plain stupid. I bet the guy who sold IAG yesterday at 10.18 is kicking himself today. That still will not be as badly a kicking though as he'll inflict upon himself in a week or two. And of course, gold could make up the losses inflicted 100% the next day and the stocks will regain only 60% . Now everyone is treading lightly... oy...

Gold is in a much better place but stock prices still remain low. If you didn't buy yesterday, your opportunity isn't over yet, but it will be soon. The dollar has just now started to fall off its 79.50 mark again and was caught at the 79.35 range. this was not the first time today it did this before going back to 79.50 and higher. If it breaks again 79.25 is the target and we can worry a little less about a return above 79.50 again.

Pay attention to whats happening but don't try trading yet. Just keep a watchful eye.

-J