XAU , Spot Gold Charts Update

BlueFlix (follows Elliott wave) said: "Gold fundamentals are there and getting stronger. But, in the intermediate term, gold may be correcting to its 200DMA..."

Well I agree about the fundamentals part, as for the 200DMA (about 530$) I think It is very pessimistic view and gold will have to retrace the whole impulsive extensive wave since March low(~535$). off course [e] low (lower then [c]) might be coming but the price of gold didn't even touched it's 50DMA (~620$) yet so it very early to call for the 200DMA. In my opinion the Fibonacci retracement levels are the thing to watch along the 630$ – 640$ horizontal support level. For Elliott wave tutorial see EWI.

See: AMEX Launches New Gold Miners ETF GDX - by Van Eck Global

Click on the charts below to enlarge:

Golden toughts…

Why fight the forex of nature? As we all know the ESF is a leading force in the gold market. Now we all have to ask our selves – what happen when the ESF decide to change position and close all of its short positions and go long? After all the gold market at much higher levels will have the capacity to accommodate much of the paper liquidity plus the Fed should still be the largest gold bug on earth.

Link to ESF