The bulls are slowly grinding out another hard-fought uptrend as they engage in even more trench warfare and the Maginot line that has been drawn at $1685 per ounce this week.  A beautiful quadruple-top was painted yesterday so the resistance will continue to be heavy.  Bulls will have to be serious about wanting that level to fail because the Fed is fighting for every inch in the Gold market right now.

If one removes the ridiculous spike low from January 4th Gold has put in three consecutive higher-lows on each correction.  This is extremely bullish beahviour and with the market capped today at $1678 it sets up an interesting problem during the Asian markets tonight, where gold was flat and then sold off during the European market.  The rally between 6 and 8am New York time could not be beaten back.  Pull up an hourly chart of gold and you will see what I mean.  A similar set of circumstances and yet the bulls stood firmer and forced the price higher until the end of the Globex session where price movement essentially stopped.

Asian weakness is indicative of the Chinese supporting the Fed’s capping strategy to continue accumulating at what amounts to stink bid prices.  Strength during the COMEX session today confirms yesterday’s raid has not deterred those that want delivery now.  A hugely volatile day that pushed the price down unmercifully against the market and it was worth a measly 79 contracts closing out and accepting paper.  There are still nearly 2400 available to be delivered this month.