Gold loses direction

Inflationary pressures are low, Yuan depreciation is gradual, Europe looks like it will ‘muddle through’ on Brexit and Hillary Clinton is favorite to win the November election. No sudden shocks to spark a rally in Gold, with the spot metal consolidating in a narrow range above $1300/ounce. But life is like a box of chocolates. You never know what you’re gonna get. (Forrest Gump – 1994).

Spot Gold

* Target calculation: 1375 + ( 1375 – 1300 ) = 1450

Short retracement indicates that support at $1300/ounce is strong. Breakout above $1350 would signal a fresh advance, with a target of $1450*. Breach of support is less likely but would warn of a test of primary support at $1200/ounce.

2 thoughts on “Gold loses direction

  1. ColinTwiggs says:

    Could well be. But breakout above $1350 would give more confidence.

  2. Gary Hutchinson says:

    This pattern looks like a fourth leg in an uptrend.

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