In February I posted indicating that gold had broken a long term down trend line. If you look at some of my even older charts you will see that my best guess in that longer term we are likely forming a large consolidation (triangle?) before a major final up move in gold months to years from now. Anyway shorter term notice that the breakout was on rising volume. We have now a positive reversal in the RSI (dashed line in the RSI: price is down less than the RSI suggesting that price is stronger than the indicator) which often leads to a higher high in price. So I am looking for more rise in gold to the resistance area then would not be surprised to see a correction. Hope you are having a great weekend. Goodguy. Feedback appreciated.
We are really completely dependent on the moves/words from Yellen since that is what is driving USD, and as USD moves, so does Gold (and to some extent Oil). Oil has more variables than Gold. With the "goldilocks" economy 'feeling' (not reality), this market is moving sideways pretty much and awaiting better Top Line / Bottom Line growth in S&P500 companies, and that is not happening with EU still in doldrums, Asia just coming out of recession, and USD being so high that exports are in jeopardy. All of these linkages are telling me that for Gold to move up, we HAVE to have the economy falter and therefore markets falter and therefore USD go down, and therefore Gold to move up with more money moving into Gold. Just my 1 penny worth of logic, and markets don't move completely on logic, but more so emotional logic.
goodguy
⋅
Kenny, appreciate your observations and basically agree. I am looking for the market to drop, and the USD has recently been in a downtrend so to me your observations support the probability of gold continuing up. We'll see. Plus oil and oil stocks have been on a rebound partially related to the falling dollar I suppose as your observe. Take care. Good trading to you.