I can see gold over shooting to higher highs. than correcting. gold is a little undervalued in its current position. But its almost impossible to value gold. So ehh lets see whats happens. im bullish good luck
Reality dictates that the DXY declines in forming EZ/EU support has been the root cause of the Massive Short Covering.
Although, I expect this too will be short lived considering the markets are baking in the better than 1.5 Trillion EURO's injected by the recent news but you should consider the facts the most important being that the actual woes in the EZ/EU are far from over and another 1.5 Trillion will still be required to support their economies.
You better believe Precious Metals will correct and sooner than most believe because these Financials and Banks are being forced to liquidate their most liquid assets.
Many things are happening and one of the most important is that much of those funds have been raised from the massive outflows from China!
Already, the Australians are faced with the threat of Deflation and that likewise has become the "Canary in the Coal Mine"
If I had to be long Precious Metals I would be Hedging my position every step of the way!