Since last November Gold has made higher lows, $1130, $1142, $1162 and last week $1168. After the November low of $1130, Gold rallied to $1307 in January. Since that time Gold as been consolidating. After the low of $1142 on March 17, Gold has had 3 higher highs, $1219 on 3/26, $1224 on 4/6 and $1232 on 5/16. I expect Gold to rally above the last high to $1238. I'm long GLD $112 calls that expire in the last week of July. I intend to sell a third of them when Gold hits $1205, another third at $1220 and the last third at $1238. If all goes to plan when I sell the first third, I'll consider exchanging the 112 calls with higher strikes to limit risk. My stop would be at $1162. I am bullish on Gold this year and expect a rally to exceed the high in January. The coming default by Greece should provide the impetus for a rally in Gold. When Russia defaulted in August of 1998 gold rallied 12% over the following 2 months.I expect the stochastic indicator to turn positive this week on the daily chart. Long and Strong Gold, xauusd