Gold has shot through the roof in recent weaks as the dollar has been crushed day after day. The last few days on gold however have been a pure and simple short squeeze. This is obvious by looking at the dollar and comparing golds movements. For instance, yesterday, gold shot through the roof again making new all time highs yet the dollar did not drop. This is a clear signal that gold is squeezing. In other words, it is ignoring the dollar and causing a move higher triggered by shorts having to cover their positions. In general, this is an indicator that gold is nearing a short term top. In addition, the extension move off the daily 20ma on the gold chart says the same thing. This is a trade that needs to come back in. Once the shorts are out, it will come in.
Chief Market Strategist Gareth Soloway Rates Gold Near Term Top With A B+ Rating. This means there is a strong possibility that gold is near or at a short term top.