Short term gold still shows sell signal...

Just a quick update.  The dollar has fallen more than expected overnight, even though the EURUSD cross did not break 1.50.

Here's what you should take from this.  First, the long term gold forecast is positive and we believe in holding physical because you never know what can happen.  Second, in the short term, we've overbought and the primary component of the USDX--the euro--hasn't been rallying.  For short term trading only, we're still waiting for a buy and believe this to be an overextended short term gold move.  The risk of an intermediate, medium sized correction grows as this move extends further to the upside, further extending gold on the daily and weekly charts into the overbought region.