Unfortunately the precious metal hasn’t had any near-term catalysts for a rally that would put it in our sell region. Gold is testing a base around 1280, which looks like it could be broken in Asian trade today. 1278 is the 61.8% retracement of the recovery from 1182 lows to 1434 highs, which took place between July and September.
A more aggressive trade could be to sell gold on a daily close below the 1278 level in anticipation of a move down to 1352 which was the mid-October low. However, the best value trade is to sell gold into rallies. A key event for the USD later today will be price action in the US bond market which re-opens today after being shut for Veterans Day. This has potential to move the USD, and in turn gold.
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