Gold rallied right up to the Daily Bullish Reversal at 1757 reaching 1757.7 closing at 1755.3. The long-term still looks quite interesting. The question that remains is just when will the Sovereign Debt Crisis hit. Europe is starting to show the ancient cracks. In Spain, there is a separatist movement brewing that is along the lines of the two kingdoms that merged to give birth to Spain – the marriage of Ferdinand and Isabella. In England there are the Euroskeptics rising calling for a referendum to withdraw from the EU. There are divisions emerging between north and south in Italy. Economics is the great engine behind civilization – its makes it or breaks it.
Against this backdrop, gold is still churning for it is the hedge against government. The problem is, they know that and are starting to pay attention to the gold trade.