As gold again approaches the top of the recent trading range at 1630, we will be watching closely for signs that, this time, a breakout is going to occur. If it does not, disappointed longs will again liquidate and send the price back into the range.
It is interesting for us to note that each time gold has sold off recently, buyers have come back in at higher levels, giving us a pattern of higher lows which suggests the market bias is upwards.
September should see life return to the markets as traders return to their desks and back to work in full force. In addition, the EU issues that have been effectively set aside for the entire month of August will come back into sharp focus.