Oversold gold stocks riddled with capitulatory bearishness is an anomaly that will be short-lived. They are due to mean revert sharply higher with gold.
You have the same number practically for the 18-day average and the 100-day average. That's called a bullish convergence right there, now which way is it going to go?
Analysts at the Australian bank noted that annual central bank gold demand has nearly tripled and now makes up 25 to 30 percent of total global demand.
What worries us about gold is the forming of what appears to be a descending triangle. Naturally, we don’t want to see that, but if that bottom end near $2,000 falls out, the fall could be a drop to $1,835.
Gold should break free from $1990-$2060 wider trading range and form a new range over the next two weeks. Spot gold has to trade over $2028.00 to rise to $2047.60 and $2064.00.
