According to recent reports, Russia and China have turned to using gold as a means of payment for goods due to mounting challenges in conducting traditional banking transactions.
The question is, what does the market want to do? Because it's not trending. What you have is a pattern of a higher high, this $2564.30 was higher than the previous high.
Silver topped in April of 2011, whereas gold continued to rally until it struck its top 5 months later in September. So, I think Silver is now going to make an attempt to catch up.
There is no trend and gold is working off an overbought condition. It's past tense. With the market down, it's worked off; it is no longer in overbought territory.
Gold looks to have further to run as the Federal Reserve prepares to chop rates, traditional drivers such as lower yields return, and Western investors pile back in.
