What we are experiencing is a bird of a feather flock together, which literally means that everyone is pilling up their bets for the safe heaven as we are moving close and close to no deal for Greece. Investors want to hedge themselves against this uncertainty and do not want to be caught on the wrong side of the trade. Equally important factor which is taking place is the rise in the bond yields across both sides of the Atlantic.
Yes, you can never forget the biggest denominator for gold, which is the dollar and if we do get a strong reading for the US retail sales, this will confirm that the US NFP data released last week has a much stronger foundation than many are estimating and the US consumer is finally spending all that dollar which everyone was waiting for. This will make the Fed more confident in their approach to ranch up the noise for the rate hike adding more strength for the dollar.
In terms of technical, the reverse head and shoulder pattern which we mentioned yesterday could break break towards the upside has broken its neckline towards the upside. The projection of this pattern could lead the price towards the $1195.