GOLDs RALLY has been attributed to both the safe haven element during the uncertainty regarding Greece as well as continued signs of global expansion, led by China. Gold did manage to close above 1158 on Friday61.8% retracement of the decline from the 1226 high to the 1044 low. Although the recent rally has breached our misplaced expectations for continued downside, we warn over a bearish divergence in daily stochastics. Only a break below 1140 would revive expectations of a near-term sub-1100. GOLD vs GBP tests its all time high but fails to close above it (756), while GOLD vs. JPY hit the highest level since the Dec 4 record high before retreating back.
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