By Mike Paulenoff, www.MPTrader.com
Gold and the streetTRACKS Gold Shares (NYSE: GLD) are having an interesting session... but their fate may be increasingingly linked to the direction of Euro/$ (or perhaps Euro/Yen these days). Let's notice that at today's low, the Euro/$ appears to have satisfied an equidistant 2-leg correction off of its July high, and is attempting to hold and to rally off of the 1.2500 equidistant support area. Meanwhile, spot gold has reversed sharply off of a new reaction low at $680.75, which is about $50 or 7% off of its equidistant corrective target at $630. Perhaps gold is climbing in sympathy with the euro bounce, but if the euro gives up I have to expect gold to head for $633 next prior to a very important low. For the time being, we will remain long the GLD in our model portfolio into the latter portion of today's session.