I have mentioned the key levels we need to watch on on gold. $1200 was the first resistance which would open up a run to the long-term trend-line and possibly $1400.
We are testing the trend-line on gold now and this is an area of caution for gold traders or investors. The rally in gold is due to the cracks reappearing in the Eurozone. The SNB removed their peg and telegraphed the rumoured QE program ahead of the meeting. Greece goes to the polls on Sunday and this QE program is simply a bailout for member states and the sovereign debt risks which a Greek exit would pose.
A further rally in the U.S. dollar could take us back down from this trend-line in gold. This would create an opportunity for the final lows in gold, which will occur before the U.S. economy turns down and gold can mount a serious run once again.