Gold has managed a rally through the 200-day moving average this morning and it is close to a huge area of resistance in the $1640/41 area.

Looks like a head-and-shoulders bottom to be, and a break of $1641 should be good for a rise to $1760, or so, if the text books are right.

How will EUR/USD react? I honestly haven’t a clue.

We could go into QE3 mode and the dollar could fall, or we could go into risk-aversion mode and the dollar could rise. I honestly don’t know which way Mr. Market will play… Should be good for the commodity currencies, no matter what, though.