When the market is under the 18-day average of closes, I have a natural bearish bias. There is little to hold up the gold market right now. The dollar is strong.
As I look at the gold market, the trend is down. You're staying under the 18-day average, therefore the bias is down. The market fell to the lower Bollinger Band.
If we see the market break through resistance of 4360-4401SPX, that's a strong signal that the low is in place, and a rally to 4800SPX has likely begun.
According to an RBC report titled “You Could Hear a Pin Drop,” the gold mining industry’s largest conference was hosted by the Denver Gold Group in Colorado Springs.
Delinking of gold and silver from the US dollar is a bullish sign. It's a buy on a significant crash for me in gold and silver for end of Oct. to mid-Nov.
Gold has been holding up extremely well through this entire corrective process. It has been mostly a sideways churn. Gold is setting up for a breakout above this 2090 area.
