Every time a still hot economic or inflation signal comes in the market quakes in its boots, and that includes the anti-bubble, gold. Confidence = intact. Gold is for when “intact” becomes “unglued.”
This is watching paint dry right now. When I look at the trend, the trend is higher lows but lower highs. You do see that right there. So the market is very stable, not really going anywhere.
Gold prices are still in a range. This range should be broken in the next two weeks. Spot gold has to trade over $2020.00 to be in an intraday bullish zone and rise to $2042.90 and $2059.60.
I'm arguing that support is at the $2047 level. So if the bulls are going to buy, I think that's where they'll buy – they'll put stops under the $2030.80 area but that's an awful lot of risk.
Gold bugs who over-allocated to the miners (and did it on price rallies) should shift their focus to increasing their share of gold bullion and buy gold if it trades at or near $1973.
In terms of momentum, we've had a correction that's gone flat so I'm back in the friendly camp until you take out the lows right through here – and specifically that low would be: $2030.80.
China taking urgent steps to prevent short selling in Chinese stocks should be a bullish sign for copper, zinc, aluminium, and silver. Gold rose as the price did not fall below $2020.
I can see the action here isn't friendly; the market's got a pattern of a higher high and a lower low. It's trying to fight a battle between the 18-day average which it gave up today. Finally.
