Before you wake up in the morning and had your breakfast gold has soared like a rocket with a $20+ move. It has now backed off already and seems to be declining. This is more than half of what I was expecting, but we can thank the Senate for this gold move as they voted to extend the debt ceiling.
What a farce as they have been playing this game for years and maybe even decades, but I don't remember them ever shutting down the government.
To keep this rally going we need only a correction to develop not another crash to a new bear market low at this time. Since this rally is not a perfect impulse it is best to keep looking at it as a potential wave 4 rally, but as a continued diagonal. The US dollar still has not made a move with a strong bias in either direction, so if it is bullish then gold has no choice but to tumble in price.