I said a few weeks ago gold is in no mans land and directionless. Since then we've gone sideways and pretty much where we started.
However, its looking like things are going to come to a head soon.
We have the main channel in the green bars going down. But within the channel we have a triangle building up between the blue line and its going to break out.
Which way?
If US 10 year bonds continue to sell off and rates rise to around 2%, whilst stock markets breach all time highs, I can imagine gold break down. First target would be the 1460 then 1430.
If some bad data comes out and the stock markets have had enough, the S&P and NASDAQ touches the all time highs and says no thanks and we see a sell off thereafter, gold is going to break up. How high? Well if we get a major stock market sell off, its a case of how high do you want, it could easily run away. If stock markets currently are at all time highs, GOLD is still holding strong at 1480-90, and we see a major stock sell off, what do you think will happen with gold...
So a few weeks ago it was wait and see. Now however, its keep your eyes peeled because it looks like it wants to break one way or the other very soon.
However, its looking like things are going to come to a head soon.
We have the main channel in the green bars going down. But within the channel we have a triangle building up between the blue line and its going to break out.
Which way?
If US 10 year bonds continue to sell off and rates rise to around 2%, whilst stock markets breach all time highs, I can imagine gold break down. First target would be the 1460 then 1430.
If some bad data comes out and the stock markets have had enough, the S&P and NASDAQ touches the all time highs and says no thanks and we see a sell off thereafter, gold is going to break up. How high? Well if we get a major stock market sell off, its a case of how high do you want, it could easily run away. If stock markets currently are at all time highs, GOLD is still holding strong at 1480-90, and we see a major stock sell off, what do you think will happen with gold...
So a few weeks ago it was wait and see. Now however, its keep your eyes peeled because it looks like it wants to break one way or the other very soon.