The Gold Market Review.
While the CoT-Report signal improved to neutral we got two new sell signals. One comes from the SPDR Gold trust Holdings. The other one is likely more important and was issued by the US-Dollar who seems to get ready for a bounce/recovery over the coming weeks. A stronger dollar should at least limit the precious metals sector for a couple of weeks.
Technically gold was able to bounce off the 1,240 USD level. The triple support zone consisting of the 200-moving average, the lower daily bollinger band and the uptrend line since last December did hold as expected.
The only problem gold's daily chart is facing right now is the bearish embedded stochastic. This might change in the coming week opening the chance for another attack towards 1,280/1,290 USD. Otherwise gold will likely test 1,240 USD again and probably break lower towards 1,220/1,210 USD.
In the bigger picture gold is running into the apex of a huge triangle pattern. The breakout will happen soon - probably until mid of August. Generally a triangle can break either to the up- or downside but I am pretty sure that gold will finally push through the six-year downtrend line and start the long awaited run towards $1,500 in the second half of 2017.
Florian Grummes
Midas Touch Consulting
Gold-Eagle
Interesting, upvoted!
I am seeing your bearish scenario playing out first before the big breakout. The USD has not even started its intermediate rally yet. That will def cap gold for a few weeks
Very possible. Although it could still go either way at this point, almost feels like a coin flip. They're definitely scared of $1300 being breached, will be interesting to see if we can negate their smackdown earlier over the rest of the week. In my opinion that could be a very bullish scenario
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