Gold continues to slip as equities drift into the year's close

Today was a relatively dull, narrow-range day on light volume, with the intraday looking a lot like another triangle that ended this time with a move up. Bit not high enough for the continued bull case - yet not low enough to confirm the bearish case. Meanwhile, gold along with euro and other currencies sagged, as the dollar was strong again. It's difficult to read much into this drifting action, other than the obvious - traders are on holiday, closing their books, and the market isn't ready to signal whether or not the retrace levels in equities will mark the rally top.

For gold, it's difficult to recommend the long case right now, since it's falling back from what should have been moving average support, now looking like resistance. So chalk off another trading day, before the half-day tomorrow to finish 2009 and then parties to ring in the new year!

UPDATE: Now the futures are suggesting that we might see the turn upward in gold, euro and yen - depending how it goes, this can be precursor to the type of rally in gold, euro and yen (and equities) that we've been setting up to expect into mid-January.