According to the charts we have viewed in this article, 1. Gold appears to have broken below short and mid-term support. Possible slowing of gold price descent...
Further should the 1678 low continue to hold, what overhead price might we behold? Technically what had been Gold's 1854-1779 support zone mirrors into the 1779-1854 resistance zone...
The sector is deeply oversold as evidenced by an extreme in the Gold Miners Bullish Percent Index (BPGDM). Commitments of Traders data for gold and silver are positive and very positive, respectively on a contrarian basis.
I thought we had our low in, but that is not the case. I believe they will try to break the $1,675 area from last August where a quick liquidation and the emotional gold bugs are now panicking into the low followed by a strong reversal..
Metals not really coming off their bottoms unlike other markets which are seeing bumps. Gold is getting a little bit of a bounce with an overall downtrend unless $1,722 is broken.
