Gold....

The gold price may have just rallied for two consecutive days (and is also into a third) but as yet this move has achieved very little. The immediate bear pressure may have been averted but in the context of a three week band of trading this is still just part of the consolidation. The resistance remains in place at $1105.60. There is a caveat though with the momentum indicators which have picked up in the past few days. Although they are still just unwinding overstretched bearish momentum, I am mindful of how they have improved. However there is much more that needs to be done for the bulls and ultimately I still see rallies as a chance to sell and this is a minor rally that should be quickly snuffed out. I will be on the lookout for sell signals once more as I feel that gold is likely to see further downside pressure on the $1077 low in due course.