Just a minor recovery or something more in Gold?

We are still waiting to see how the timing relationships we mentioned earlier this week are going to play out. The euro is starting to show signs of stalling out while Cable remains pretty bid. How we close the week out should help clear up the cyclical/technical picture and give us some directional clarity. Another market worth watching closely here is Gold. It has a similar cyclical set up as that of the European currencies and actually might be leading by a day or so. On Wednesday the metal found support where it needed to with a reversal occurring just a bit under 1200 dollars an ounce at a convergence of the 78.6% retracement of the year-to-date range and the 1x1 Gann angle line of the 2013 closing high. A move through 1236 is now needed to confirm that a more meaningful push higher is underway. Weakness below 1197 would invalidate the burgeoning positive cyclicality and re-focus lower.

New York closed at $1,211.20 up $2.70. In Asia the gold price was lifted to $1,215.60. London Fixed the gold price at $1,217.75 up $11.25 and in the euro, at $1,068.295 up 8.939, while the euro was almost unchanged at $1.1399. Ahead of New York's opening gold was trading in London at $1,217.4 and in the euro at 1,068.18.