What tends to happen in these situations is stop losses are triggered and positions are liquidated, overshooting the move. I doubt the correction will be over until the uptrend line is broken..
I am not convinced that if you get to a debt-limit deal, that you can get this by June 1. Nobody is going to agree to a long extension. Gold down nearly a $100 from its recent near record highs. Silver cracked.
While debt, war, de-dollarization, the Fed, and new Chinese gold-linked bank accounts get the headlines, investors should also stay focused on key oscillators, support and resistance zones for gold..
In April, China increased its gold holdings by about 8.09 tons, bringing the total to approximately 2,076 tons, following a 120-ton increase in reserves in the previous five months.
Gold is fighting a huge battle! Gold on a closing weekly basis is above it... by $5. Market has a bullish higher lows and higher highs, good. Overbought in an uptrend. This is what bothers me..
Chinese economic growth has disappointed in April. This is the sole reason for the selloff in price of copper, zinc, and aluminum price. Short term technical breakdown added to fears of bulls.
But the more morose lowlight was the comprehensive shellacking of Silver, her selling overdone indeed! And it all happened in just these last two trading days..
