Gold has been trading in a flag pattern for a little over 1.5 years. This consolidation pattern tends to lead to a big break out, which could point prices to go higher but also lower. Fundamentally speaking, if stocks are under performing and real bonds rates are returning negative yields, gold would be an attractive hedge against inflation and beaten asset prices.
I believe gold is about to drop really hard because of that head and shoulders pattern I’m seeing on the daily time frame.
WaisTrades
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@Riiv, its a much smaller pattern versus the larger flag pattern in play, but it is possible it could go lower which would scare off a lot of people in the market. I have my alerts and stops set to the bottom of the triangle, but a move like this seems more like a bear trap