On Monday with the Equity markets getting hammered Gold was flying higher as it makes a run at our first target of 1500. Gold reached 1487 Monday, every attempt to sell off was met with buyers.

The overnight trade saw equities down another 500 before staging a rip your face off reversal and is now almost 300 points higher. The reversal in equities is no surprise, nor is the small sell off in gold overnight. Gold appears to be a little overbought and should take a rest for a couple of days.

With gold rallying from around the 1400 level which was one of our buy spots, the move up was a little too fast. We expect gold to go sideways for the next couple of days to resolve the overbought conditions. 1450-1460 should be the new support and a level to buy. 1500 is coming, the only question is when.

Todd Horwitz
Chief Strategist