"Gold seems to be anticipating some sort of monetary stimulus and/or agreement out of the upcoming Brussels meeting this Friday in Europe to deal with the sovereign debt crisis in the Eurzone. For that matter, so too do the US equity markets which are grinding higher.
"Failure to come up with some sort of market pleasing action or agreement on the part of these finance ministers will send the equity markets on a very sharp trip lower out of disappointment. On the other hand, any agreement reached will put a firm bid beneath those and engender buying in the Euro, at least for the short term.
"The latter will see the Dollar move lower and should bring on the risk trades pushing both gold and silver higher. It might be enough to take gold out of this coiling pattern to the upside. It will need to at least better the $1765 level and hold above it to give us a shot at a test of $1800." - Trader Dan