The US dollar is still throttling gold. For years, gold has tended to rally when the USDX is weakening and vice versa. The dollar is affected by changing Fed rate odds.
What I can tell you in looking at the chart, it's a bear slope in the market. I can also tell you you've got a pattern that's very clear of lower highs and lower lows – that is bearish.
The market is now staying under very easily both the 200 and 100-day moving average of closes. You'd have to get over $2047.30 to negate the downtrend.
Investors with core positions will of course benefit in this scenario. For fresh buys, the big zone of focus for investors must be $1973, which is a key previous low.
We're down for the week by 1.6%. So, here's your test coming in, you can see how the market fell apart and today was a huge outside day to the downside.
Upper support is in the 4980-4997 SPX region, which if broken, will likely suggest that the pullback has begun, and I believe it will point us down to the 4802-4862 SPX region.
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.
Gold has found friends with central banks around the world. China added nearly 300 tons of the yellow metal in its fifteenth consecutive monthly purchase.
