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Metals: CPI Will Drive Trade

Now, as we look at the gold market, one of the things I've been telling you on a continuation chart and this is a weekly chart of closes. I was looking to see if the market would get back to the 18-day average of closes and what it did there. It's taken a heck of a long time but it has finally occurred. So right in front of CPI, I think this is an event that you got to keep your eye on.

When we take a look at the daily charts, there's nothing friendly on this market; it's still gradually easing down. The pattern is one of overall, lower highs, and lower lows – you're under the 18-day average so, the next support in the markets is to 200[-day average], then the 100-day average along with the Bollinger Band bottoms. Now, look at how they all come together here, that sort of $2023.5 - $2026 area. This is your big support.

That does not mean that I'm saying go out and buy it. It does mean that if you were short, I'd be telling you, yes you want to cover short positions in front of the CPI, if you were my client. 

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