Bears Cover Their Shorts - Gold Rallies

Gold continued to bleed early in the session hitting a LOW of $1852 before staging a nice rally.

The chart damage is still clear so it will be interesting to see if gold can continue to rise over the next few sessions. My gut is that those who were short simply were taking profits.

The problem for gold right now is that those who have been caught in long positions are likely to sell any rally in the hope of minimizing their losses.

Silver dropped as low as $21.81 before climbing out of the hole.

The Miners, GDX, hit a LOW of $37.08 before rallying regaining the 100 day moving average and closed above the Lower Bollinger band.

My eye sees simply a little short covering.

CAUTION is still warranted.

Peace out and Stack On!