Gold is testing the 18-week average of closes. Hot PCE indices could drop it lower, while lower numbers might push it up. The battleground is the 18-day average of closes.
The pattern reversed on us. If the decline continues, the market might head toward the 18-week moving average of closes, which is still in play. For the week, you're up 0.01%.
The technical indicators are bearish. Buy-stop losses will be triggered by very short-term traders if the falling trend continues in gold, silver, and copper.
You can see how the gold market has been trying to come back to that 18-week average of closes. That number is around the $2290 level. The market isn't that encouraging.
Gold ETF buying in China is driven by weak equities, a weakening local currency, and decreasing bond yields. Chinese gold ETF holdings are now at a record high.
A break above $2,400 would please the bulls, but we must achieve this before dropping below $2,300. The current malaise could persist into July, even if $2,300 isn't broken.
Gold's breakout rally led to $50 silver and $3,000 gold targets...I think those targets are going to be met. But really, we don't want them to be met right now.
