Bottom line: These first few days following this major announcement should somehow get spun into a gold pullback. Indeed, should gold rally hard from here it will be a major signal that the government has failed.

Will this action be enough to end the spring rally in gold and cause a seasonal pullback into the July time frame? We just don't know yet. Support in the Euro is right near the 900 area. On the downside watch the 875-900 area for support.

The spring rally in gold is still intact on the chart. But let's not just shake off a $750 billion infusion and such a coordinated effort over the short term.

Initial support for the week comes in US Dollars at the 1185-1188 and 1163-1176 areas. On a daily basis it's 1147-1154. On a weekly basis the 1115-1125 area is key spring rally support.
Resistance is the 1209-1224 area and the all-time highs.

Look for an early-week pullback to support and the potential for gold to hit one of these major support areas listed above. From there price should try to recover. Investors should stay the course until there is a weekly reversal on the charts.

Should gold move above 1220, the odds for a panic move to new highs in the 1250-1350 area will be in play. Otherwise, we look for a pullback to support.