This morning gold is under pressure, we suspect due to a few disappointed longs cashing out after failing to take out 1620 and perhaps a bit of selling prior to options expiry.
The Cyprus situation appears to have calmed down for now, though the problems in the eurozone haven't even begun to be resolved and can flare up at any time.
We would not be surprised to see the gold price capped below 1600 on Monday due to options expiry in April gold, thereby seeing all of the 1600 calls expire worthless.
The dollar continues to exhibit strength and is holding above 82.5, whilst oil is having trouble moving higher than the $93 area. Equities are showing a little strength this morning, again capping interest in alternative investments such as gold.
Today's video for subscribers looks at the current position from the perspective of both bulls and bears and outlines our strategy for our next trade.