Gold Corrective Low Not Yet Confirmed

The SPDR Gold Shares (GLD) hit a potentially important corrective low at 106.95 yesterday morning (in sympathy with the weak euro). The recovery rally since then has not triggered confirmation that the corrective low is in place. To do so, the GLD must hurdle and sustain above 108.60, which will argue for upside continuation to 109.50-110.00. Inability to extend the current rally, followed by a decline that breaks 106.95, will have very negative near-term implications for the GLD, which could revisit its Feb low at 102.28.