Gold is now delicately poised - to say the least.
Am closing out the long at 1274.75 for just under 4 points as
it looks like it can come back again to the lineof last support at 1270. This entire pattern all month looks like a
continuation pattern, prior to gold crashing back to 1203 level. But gold has been playing chicken with the bears all
month and it may still make one last rally on dollar weakness before falling away. Still think it will bounce off that little
uptrend line one last time on dollar weakness so will be putting in an order for one last long attempt at 1270.5 with a
stop 1.4 lower at 1269.1. If struck and then the stop goes too will reverse for fall to 1260 with stop above 1270. If we see
this price action will close out and await what happens at 1260. That's the last line in the sand for bulls. If and when it
caves in will look to short pretty much immediately with stops above 1270.
Upside depends on DXY: it's plain to see from the shape of the pattern this month that no one really wants to buy gold , it's as
if they only do because if they don't they do nothing instead, or worse, lose by being wrongside and staying stubborn. So
this long is contrarian and low risk with a stop 1.4 points away if struck. It just needs to get through 1275 now and it should
start to attract buyers - but there is resistance right here, so am taking the few points available and using them as stops on
next trade, as above. and if it doesn't come back one last time from here will have to buy again above 1276 for another
reluctant rally to 1286 at least, more likely to1297 and just maybe1305. This entire rally will depend on the Dollar falling.
If it doesn't gold can't really rally. Hence both charts. Hope it's of some use in the coming days, whichever way gold jumps
next. Good trades coming up here, though this might not be one of them!