For weeks, the gold price has been consolidating between 1,900 and 2,000 US dollars. Most recently, the range narrowed to between 1,960 and 1,930 US dollars. In the past two trading days, there seemed to be a downward breakout, but the price recovered quickly.
The chatter seems clear: at the bottom, the range between 1,870 and 1,830 US dollars must be worked through. But that is what everyone is waiting for.
The consequence of these collective expectations: The price continues to move in its range and does not dare to break out.
My view: There will be another rise to the area around 1,960 US dollars to sweep out most of the bears before the market is cleaned out at the bottom.
The chatter seems clear: at the bottom, the range between 1,870 and 1,830 US dollars must be worked through. But that is what everyone is waiting for.
The consequence of these collective expectations: The price continues to move in its range and does not dare to break out.
My view: There will be another rise to the area around 1,960 US dollars to sweep out most of the bears before the market is cleaned out at the bottom.