Like I said – short term. We’re sitting right at the intersection of 2 big resistance lines (check chart below). For a short term swing, I think you can play against these trendlines. Short gold one way or another, with a tight stop at $1265 gold. So less than 1% risk, with downside on gold into the $1220’s.

Another perhaps confirmatory signal (at least thus far) is the USDJPY holding the lower 110 support region of the past few sessions. You’ll note the larger Cup&Handle on the USDJPY daily/weekly that I’ve been pointing out recently but that’s a whole other story. Point is USDJPY looks like its ready to bounce off support again – which confirms bearish for gold here.

 

Update: Fed Minutes Weds 2pm EST….could be the catalyst for the move in either direction. If you don’t want to bet directional, or don’t trust the FED, you could do some sort of straddle if you’re that sophisticated…….buy equal $ amount of NUGT & DUST……or weekly option straddle. Wait a bit after the fed release, then dump the loser, let the winner run.