Gold testing key support.

Even though gold is testing key support at the 1555 breakout point, I think the risk is near term we trade a little lower towards the 1520 which is the bottom of the support band in the metal. The 61.8% retracement at the 1543 level would seem a natural target if the market wants to run some “weak stops” but could also make a move to 1499, the 200dma. The good news is for bulls the RSI has worked off all overbought signals we had the last few weeks and the pullback has been minor considering the move higher over the last 1.5yrs. Serious question: Do you really want to be short gold in this environment? I’m sure most of you would answer no.