Bull Trap? Or beginning of Golds Rally?

The problem with trading gold is that even if all indicators are bullish, you can still get caught on the wrong side of the trade. I’m very optimistic right now. We saw excellent volume in the miners, and strong gains strait to the close. The HUI gold bugs index finished nearly at the days highs thanks too strong performance from AEM, KGC, AUY, and HL.

I don’t see us going below the recent 800 level but this doesn’t mean I won’t be cautious for a re-test of the 800 level. This is very common with gold to show great strength and them fall off a cliff again. You can never be too sure of any up move in the gold market. I’m expecting continued strength in gold tomorrow, but will be watching the overnight trading in case I’m wrong.