Gold prices stabilized after spiking below $1700 early in the week. A close on Friday above $1760 could trigger a bullish reversal and a potential double bottom.
Before we jump into the weekend, I wanted to mention the weekly chart of gold.
GOLD WEEKLY: A close above $1760 on Friday would create a bullish hammer and a potential Double Bottom. Upside follow-through above $1800 next week would promote an intermediate low with a breakout above $1920 required to confirm the next bull market advance.
Note- A sustained breakdown below this week’s low ($1675) would support more weakness in precious metals and a possible dip to $1550 or lower in gold.
Our Gold Cycle Indicator hit ZERO on Tuesday, triggering a Portfolio Buy Signal. Currently, the GCI is sitting at 18.
Covid Update: Our analysis supports a rigorous battle with Covid returning this Fall with a potential surge into precious metals as a store of safety. Watch for spiking demand in physical investment bars and coins as an early warning.
Have a great weekend.