It was an interesting day for the gold market, the price of gold made a marginal new high for the week then pulled it all back, the CBOT contract volume was huge - 35,071 for the 100 oz August contract. This is speculation washout my friends – nothing more, nothing less. Gold will head higher when the time is right.
Technically both gold and silver are trading in a modestly raising channel with marginal higher lows and higher highs. This is consolidation pattern.
All fundamental factors are still in place, gold might surprise any moment with spectacular rally. Investors should not fear, there are 101 reasons to buy gold in a conservative way. Traders should be very prudent as timing the gold market is extremely difficult.
Here are gold and silver one hour channel charts with Bollinger bands and stochastic indicator. Click on the charts to enlarge: