Gold Fails to Launch, $1321 Must Now Hold

New York (Sept 15)  The effects of last night's  missile launch dissipated quickly on the markets. Gold gave back all gains and is now lower. The Yen unwound most of  its own move in 3 minutes.

Yen buyers (decrease in value vs.USD) after missiles fly over Japan may want to question that logic.

Spot Gold on the other hand, may be seeing less hot money piling in on news like this due to some wounds needing healing from last time up.

Perhaps missile launches are not very interesting anymore. The half life of their effect certaintly is shorter.

We wrote last night that perhaps this was the surprise event that would keep gold from continuing its descent. Otherwise, the trend was still lower.

The market came working 30 minutes of giving us an "all clear" that the downside was temporarily closed off. But it was another tease. Now we are looking at a renewed risk lower.

The single best indicator for the last month in our timing arsenal has been the 4 hour chart with the Volatility system applied. And right now if the current bar settles under $1321 spot that's a trigger.

Conversely, a settlement over $1332 on the accompanying chart's current bar gives the go ahead to be long with a reasonable stop.

If neither happen, the game goes on.

As we finish this, the Yen and Gold are attracting some buying after erasing last night's moves and then some.

Source: MarketSlant