So while the swing line has turned up the battleground is very clear. It's at the $2360 level; for me to get friendly, you need to close over it. So far it's a bear market rally because of the bias.
The gold market has been over that 18-day average all this time. So it's had a heck of a run and it is now the correction phase that it's in. I didn't say a bear market phase.
The gold price had a bad day, falling by more than 2%. Whilst we may well see some additional pullback, we don’t expect this to be the end of the gold price rally.
So far for the week, the gold market is down 3.2%. If the market were totally fall out of bed, it could go back to the $2141 level. That's not what I'm expecting.
Don't know if it'll last or not, but starting down 2.96% on the daily chart, you can see how much gold fell. So, the gold market today really got hit hard; higher high, lower low, it broke the uptrend.
Assuming bullion prices hold through the end of June, the rise in gold prices could provide a nice bump to miner earnings starting in the current quarter.
Gold rising despite rising long interest rates and a rising US$ Index is interesting, as it appears to indicate a shift in sentiment. Yes, we have the fear trade, but we also have inflation eroding all fiat currencies.
