Yesterday, gold initially fell hard after Bernanke didn’t offer up the QE3 juice the market wanted. At $1571, a furious bid came in and gold recovered most, but not all of the losses.
Today, $1570 just gave way, pointing to a potential test of $1555. So far this year, gold has been a range trade — buying around $1550 and selling around $1600 has been the only way to make money.
In the bigger picture, $1520 is major support and $1640 is resistance. Everything in between is noise.
