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Soaring Dollar & Rising Interest Rates

If you look at gold, we're having our first reasonable correction on a weekly basis. You're almost down three percent — big break. Could the market go back to the 18-week average of closes? it could. Is there anything here saying it has to? No, but that it could do. When you look at what happened here, if you come into this chart action prior to just now, this is what you looked at. It's almost a mini head and shoulder formation. The concept of another shoulder ahead, a mini one. And if you flip it over from $2800, let's say to $2750 for all purposes, maybe you get to the 27 level on the potential of that move. You got a little bit under it and we'll see if you can bounce. 

When we look at the swing line and I come back, the game was a little bit different, and here's why it was different. Coming in, gold had a downtrend - lower highs, lower lows. It's certainly what I would have said last night, then it breaks down like that. Where was it? It was at the 18-day average fighting a battle. Gold had come down and the big question is, was this going to hold the market or not? This was our initial objective.

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