The dollar rallied sharply between 9:00 – 9:30 AM. Prices reached the 94.90 level. The morning push broke above the 14-day cycle trendline. However, prices would have to close above 94.94 (currently 94.77) on a daily basis to support a new cycle advance. Gold declined from $1212.80 to $1202.10 as the dollar rallied. Prices […]
Continue Reading →I think it will be a decisive day in gold and the dollar. The dollar (currently 94.61) needs to break above 94.95 and 95.10 to support a cycle low. Whereas breaking below 94.42 would recommend a decline to 93.75 or even 93.00 in the coming days. Gold (December) slipped a little overnight (currently $1208), […]
Continue Reading →The dollar is rolling over slowly, and prices are below the 94.65 level cited in the morning update (currently 94.63). I figured that would be enough to push gold above the $1215 level. However, prices haven’t responded as I suspected (now $1212). So either the rally in gold is delayed, or the dollar needs […]
Continue Reading →Gold (December) held above the $1206 level overnight, and prices are currently trading around $1210. A sustained move above $1215 would support another run at the $1220 level. The Dollar (currently 94.84) is approaching resistance near 95.00, touching 94.93 earlier this morning. Prices are at a crossroads. Above 95.00 – 95.10 and the cycle […]
Continue Reading →Gold (December contract) is coming into support between $1206 – $1200, currently at $1207. There is a convergence of short-term trendlines and retracement levels between $1198 – $1200. This area needs to hold tonight and tomorrow to make another attack on $1220. The shorts defended $1220 well today and don’t want to see this […]
Continue Reading →Miners are overreacting to the downside as gold is trading just 0.25% below yesterday’s close. GDX gapped higher at the open and prices are trading below yesterday’s lows, a bearish engulfing day is likely. I’d be surprised if this were the end of a counter-trend bounce for two reasons. First, I think the dollar […]
Continue Reading →The Dollar is dropping into a cycle low, and prices should slip a little further before bottoming. If correct, then metals and miners should extend their rallies before entering a multi-day correction. Gold ran into resistance at $1220; this is a key level. Prices are pulling back (currently at $1214). Above $1220 and short […]
Continue Reading →Miners held their gains after 11:00 AM and prices are near the highs of the days. It’s not the spirited recognition day I’ve been expecting, but it’s constructive nonetheless. Ideally, prices will maintain their momentum into the close and set up another rally tomorrow.
Continue Reading →Miners held up well, relatively speaking, as gold declined in May and June. In July, psychology shifted, and miners began overreacting to the downside. For example, gold declined just 0.75% last Thursday, but miners finished 3%+ lower. To support a meaningful bottom, miners need to begin overreacting to the upside. We see a little […]
Continue Reading →After several months of weakness, precious metals are finally beginning to perk up. It’s the first time in a while gold reacted positively to Fed-related news. It feels like a fundamental/physiological shift may be taking hold. I believe last weeks $1167.10 low in gold was the much belated 6-month low. Currency fluctuations, record short-selling, […]
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