Gold is pulling back from its daily highs as volume tails off.  While the movement above June 24 highs was encouraging, volume didn't match the upward intention of the precious metal.  However, gold has made a nice recovery into respectability, and may remain lodged between our trend lines for the immediate term.  It appears the precious metal had sold off too far too quickly, and investors took advantage of oversold conditions.  Regardless of gold's comeback, we've seen several important technicals tested to the downside. 

Therefore, the debate between the bulls and the bears continues as investors jockey for position.  We expect gold to maintain its positive correlation with crude and equities along with a depreciating Dollar.

The fact that the sustainability of the near-term and medium-term up trends of gold's positive correlations have been thrown into question make's the precious metal's downtrend all the more viable.  Therefore, we will have to watch how gold interacts with our 2nd tier uptrend line, 1st tier downtrend line, and $950/oz in the near-term. 

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