As I write this gold is testing the crucial $1298-$1300 area which served as previous resistance:

Gold (Daily)

~$1300 also happens to be the 38.2% retracement of the July-September rally. Moreover, given the fact that gold and the 10-year UST yield have exhibited a strong negative correlation for the last few months, and 2.28% has served as resistance on the 10-year yield, we might be near a short term reversal in both gold and the 10-year yield:

US 10-Year Treasury Note Yield (GLD at top, TNX/gold 20-day rolling correlation at bottom)

Sentiment on gold has also begun to move into bearish territory after nearly reaching extreme bullish territory less than two weeks ago. It never ceases to amaze me how gold is the asset which people most love to buy when it's going up, and to sell when it's going down. 

For my part I bought both $GDX and $GLD during the final hour of today's trading session. These are both trades which I may or may not update via the 'index' stream. 

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