Well Well it looks like Gold wants one last go at $1280, thanks to North Korea.

Do I trust it? No way. But I’ll play it as it tells me to. Solid close over 1280 and we could be looking at the glorious squeeze/breakout we’ve all been longing for. Otherwise, a less glorious drop to 1220? Let’s take it one step at a time.

As I type, the USDJPY is giving it all up like it’s prom night. So it looks like 1280 will indeed be tested. If the 110.00-110.70 chop this past week was just a half-way pattern instead of a bottoming pattern, a measured move would put us at ~106.70, plenty of power to push gold to 1280(perhaps beyond). Coincidentally there’s also some support at 106.70-ish. This could get interesting very soon.

Edit: updated chart with vertical channels – if we go to that bottom vertical rail on the USDJPY, things will get very pretty for gold, indeed.