Eye on $900 gold

[][] CBOT February Gold went to intraday high of \$900.40 today. It closed at \$897.20. The million dollar question is, with it go up or down. This is very exciting indeed. If it goes up, \$930 seems likely to be the target. If it breaks down though, it could launch back to \$750 (triangle low) or \$650 (flag) level. It's funny that watching the price alone, you can see that everyone's waiting to see which way gold is heading. The price is just hovering below \$900. Once it breaks either way, all hell's going to break lose. I almost pulled my trigger before the close and BET on gold going down because of lower volume, the run up was too fast, and the low season (summer) for gold is imminent (Feb - Aug are usually lower). It would have been a big gamble as we're heading into the weekend so there's going to be a big gap. A lot can happen. In the end, I didn't short gold because it's a low probability trade. It was outright gamble.

Here's a picture I grabbed from Goldbriefing, showing the flag and triangle nicely.

[][] Update: Gold went through \$907 on Monday

[]: http://bp2.blogger.com/_Vlx60iTPx5s/R4hEVPY4uhI/AAAAAAAAAF8/nScIjjd1JDM/s1600-h/gold_charts.jpg []: http://bp0.blogger.com/_Vlx60iTPx5s/R4hFqvY4uiI/AAAAAAAAAGE/oGsQt_Wlq-A/s1600-h/20080110.01.png