We still consider this move to be corrective - inflation is low, ETF outflows continue apace, the Indian Government has recently placed further restrictions on gold imports and economic conditions are improving in the US, seeing higher interest rates and an end to QE in sight.
We therefore expect gold to resume the down trend once this counter trend rally runs its course and only a strong move above 1425 will see us reassess this view.
Equities remain in a strong up trend, diverting funds away from gold in search of yield and oil is also powering higher on anticipated economic recovery in the US. The recent weakness in the dollar explains gold's recent strength to a large extent - we expect the dollar to start to rally again imminently.
Today's video for subscribers looks at the recent trading in more detail and our expectations for this rally.