A huge sell off today was triggered by Ben Bernanke's remarks to the US Congress, which traders interpreted as a signal that there wil be no more quantitative easing (QE) and that improved employment prospects were putting a different slant on thinking.

The massive wave of selling means that we are not in Wave 3, we will have to see how this sell off pans out, though we suspect this was actually the top of a larger Wave 1 and we are now entering Wave 2.

This price action is typical in gold, as we have highlighted many times before, and demonstrates how effective our strategy of trailing stops to lock in profits is in this market.  We took another $35 to the bank today, making a superb $161 profit for the first two months of the year.

As we have poined out several times in our video updates, the characteristic Wave 3 will consist of strong powerful impulse rallies followed by shallow or sideways consolidation patterns, making it difficult ot "get on board" once the move is underway.

The action of the last couple of days is classic Wave 3 behaviour, we saw a shallow correction to support at 1763 and another impulse wave higher from there.

We remain long from 1730 and will trail our stop up as advised to subscribers in todays video.

Gold bounced off support at 1763 and has resumed its uptrend.  This level was resistance and has now become support.

We expect gold to climb steadily from here, todays video looks at price targets for this rally.

Gold has started the week in quiet fashion and is drifting downwards in a shallow correction of last weeks gains.

We expect the uptrend to resume in short order, however we have moved our stop up to lock in gains - today's video looks at the strategy behind our stop placement.

Gold continues its march higher, hitting 1790 yesterday and showing no signs of slowing down yet.

Today's video looks at our strategy for placing and trailing our stop loss to lock in profits on a winning trade such as we have now.

There is no doubt in our minds that Wave 3 has started, the breach of 1763 prompted a wave of short covering and gold has continued higher from there.  This wave should be characterised by powerful rallies and very brief shallow corrections making it difficult to "buy the dips".

We are well placed with our long at 1730 and expect another very profitable trade, our third of 2012.

Today's video looks at our stop placement and potential areas of resistance.

As predicted yesterday, gold did indeed break out of the triangle formation we identified some weeks ago and rallied strongly up towards the 1763 resistance area.

A break of this price will confirm Wave 3 is underway, todays video looks at our targets for Wave 3 and timescales for this upleg. 

Our patience with our long position has been rewarded, we will look to trail stops up to lock in profits as usual as this rally develops further.

After pushing up against the upper boundary of the triangle correction for most of yesterday, gold finally appears to be breaking out to the upside and resuming the bull trend.

It is early days and we will not have final confirmation until the 1763 Wave 1 top is bettered, however the signs are all positive.

We remain long from 1730 with a tight stop.

Gold is now bumping up against the upper boundary of our triangle correction again and we watch for a break out.

Today's video looks at potential targets for Wave 3 and when we can expect this consolidation to complete.

Gold continues within the consolidation triangle - it now seems apparent that we have a flat bottomed triangle correction, with the flat bottom acting as support at 1705 and the upper boundary resistance as the descending triangle side.

A break out of the triangle in either direction will start the next large price move, we still consider an upside break the most likely outcome.