Bernanke's statement to Congress did nto contain any surprises or anything new, however the prospect of tapering QE later this year and into 2014 gave the dollar a boost and put gold under pressure.
It is interesting to see how sensitive the gold price is to dollar rallies at the moment, though the price barely rose at all during the dollar's recent sell off. This is bearish for gold and worrisome for the bulls (of which there are still too many for us to declare the sell off over).
We have said for many months that a strong rally in gold will not occur until there is a meaningful correction in equities - this looks further away than ever as the US stock markets are testing their all time highs again after a healthy correction back to the break out point during June.
The dollar looks to be stabilising after its sharp sell off last week and, as we have noted above, any dollar strength will translate to gold weakness.
Today's video for subscribers looks at yesterday's trading action in more detail and our strategy for our next trade.