Gold has rebounded $14 from its $1555 low.
The trade in gold this year has been to buy around $1550 and sell at $1600/20 but the bounces have been shallower and shallower (lower highs). It’s not the sexiest trade but it works, so long as you have a stop at $1522, which is critical support.
If that level breaks, it could be a very quick trip to $1300 but my sense is that such a breakdown could only come on another negative short to global growth, which would spark QE3, thus re-inflating the gold bubble.
