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Metals: PCE Price Index & US Jobless Claims Will Be Market Movers

When we look at the gold market, I had the battle that I wanted, market pulled back to the 18-week moving, average of closes. It's held that at this point, you can see the sideways action that has been going on and in that sideways action, the swing line (and this is a study that I wrote many years ago) here you look to see what the market of the prior bar did.

What's the risk associated with the trend? From that point to take out that low and that would break the uptrend as an example. What's an uptrend? Well, you have to understand the definition, in an uptrend, you have higher lows and higher highs, which you absolutely have. 

Then I look at moving averages; how you have a convergence of moving averages. You have the same number practically for the 18-day average and the 100-day average. That's called a bullish convergence right there, now which way is it going to go? You came down today, challenged them perfectly held them, that doesn't mean anything. You got to get through, tomorrow's reports to show what this market's going to do.

If it takes off to the upside, there's a potential that maybe you go to the upper band. If you start cutting through all this. Well, in this market, before you get to that lower band, you have to prove, that you can get through the 200-day average at $2021.80 and gold is going to be looking: What is inflation looking like?

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