Technically the daily uptrend is still intact. HUI, XAU, and GOX actually finished the day higher but GDX closed lower. Silver pulled back less then it normally does on events like this.
CBOT June gold (ZGM7) intraday (120 minutes) chart
Gold in nominal USD terms is trading near record levels. If you refer to long term gold charts you will easily notice that gold have been trading at current levels for very short periods of time. I mention this because I think that physical buyers see current levels as unsustainable and thus shy of buying large amounts of gold. Some more time might be needed to digest the current price level. Hence, egg pattern, prolonged incubation process then an inevitable hatch.
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7 comments:
Probably going to retest last low?
Frank
Intraday Momentum indicators are turning up, so we are getting long gold.
If last low is breached, I guess we are going down back to 620 level?
Frank
Yes , more downside certainly possible, maybe 650's bring in some real buyers?
The daily chart = lower high and lower low – bearish .
After looking at 200 day chart, do you think we might be in a same situation as Jan 05? That was lower low accompany with a prior lower high (it was even a neck break of head of shoulder patter). After few day consolidation, it kept going up and never look back...
Frank
And also on Tony's blog, it seems as long as miner is down gold won't go up. Miner are part of equity market. It seems equity market finally start wave 4 down according to Tony's blog. Maybe until equity market correction (wave 4) over, gold won't turn up? What do you think?
Frank
Frank, good question you ask. Equity markets like gold and other assets are all dependent on global liquidity. Thus you have some kind of correlation. This correlation may or may not hold into the future. Gold is smaller market then equities and can certainly go higher while other assets are down, that’s all I can think of right now, I will certainly look more into it.
http://globalgold.blogspot.com/search/label/Dow%20Jones
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