Gold Market update

The Gold Silver ratio (XAU / XAG) = ~ 53.72, Dow / Gold = ~ 16.31, Gold / Crude Oil future = ~9.77. Gold is down about 50$ since the most recent peak (~730$). The pullback is purely technical and the gold market fundamentals have not changed.

Technically there is one last relevant short term trend line in place if it doesn’t hold then watch for horizontal support and Fibonacci lines. If I had to put a short term trade: It will be at current price with a stop just below the 20 DMA. Investors, Shorts and those who hold no position in gold should use any weakness and buy.

Click on the chart below to enlarge (FireFox browser highly recommended – link for download at the left bottom of this page)

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