On Gold - Tuesday Will Tell the Tale

Silver smashed through resistance today, and if that's any indication, we may not get that gold pullback.  Gold is right at the critical level, and unless it just stands still in the next 24 hours, either the pullback begins or the head and shoulders thesis is out.  Again, we're largely overbought again with momentum now in the territory where pullbacks have occurred with consistency.  At the same time, the divergences have begun to fade a bit.  Let's put it this way, a strong daily close above 1424.40 will attract more momentum buying and carry the price higher.  Since we're less than $2USD away, we'll likely see how this is going to play out within 24 hours.

While we are big gold bulls, the current trend makes us a bit nervous.  Either we're going to get a strong down move soon, or people are going to be bartering for food in light of the destruction of fiat currencies within the very, very near future.  Which direction it's going, we can't say yet.  One way or the other, hold on because it's about to get bumpy.