Is Gold's Reversal Important?

02/25/2010 3:20 pm EST

Focus: COMMODITIES

Thomas Aspray

, Professional Trader & Analyst

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The gold futures and GLD were both weak in early trading as stocks were getting hammered. Mid session prices reversed (on good volume) supposedly on rumors that China would be buying gold from the IMF. I pay little attention to such news but the technical pattern looks quite interesting.  It is my view that the decline from the Dec. 2009 highs was a correction and GLD after breaking the hourly downtrend rallied to $110.40 and the correction has so far held the 50% retracement support.

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